Rev. Proc. 2018-18
on March 5th, which adjusts the limits for various tax sections, including Code Section 223/HSAs. The adjustments are the result of changes made in the Tax Reform bill signed by President Trump in December 2017.What Changed?
The annual HSA limit for family contribution went down from the previously released $6900 to $6850 and the reduction was made effective back to January 1, 2018. The annual single limit of $3450 remains unchanged. What’s the Impact to HSA Account Holders?
The $50 reduction in the family contribution limits can create a headache for those HSA account holders who have already funded the full annual contribution of $6900. Those individuals will have to withdraw the $50 excise contribution before the 2018 tax filing deadline to avoid any IRS imposed penalties due to over-funding. For those who have funded no more than $6850 for 2018, there is nothing needed to be done.
The IRS released
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