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IRS Moves 2018 Family Contribution Limit Back Up To $6,900

In March 2018, the IRS lowered the 2018 HSA contribution limit for accountholders with Family coverage from $6,900 to $6,850. However, the IRS announced yesterday it was reversing this change and raising the contribution limit back to $6,900 for accountholders with Family coverage.


The IRS cited complaints that the contribution limit change imposed “numerous unanticipated administrative and financial burdens” for accountholders with family coverage. You got that right, IRS! Read the full IRS ruling here (it’s only 5 pages).


If you had contributed $6,900 to your HSA before the first IRS switch and had received $50 from your account as a distribution, you have two options. First, you can put the $50 back in your HSA as a regular contribution. Or, if you spend the $50, you won’t have to pay the 20% penalty tax on it or include it as gross income, even if it wasn’t spent for a qualified expense.


The 2018 contribution limit for accountholders with Individual coverage remains at $3,450. The High Deductible Health Plan (HDHP) definitions remain the same, with a minimum deductible of $1,350/Individual and $2,700/Family and maximum out-of-pocket amounts of $6,650/Individual and $13,300/Family.


2018 Contribution Limits

Individual: $3,450

Family: $6,900

Catch-up Contribution: $1,000 (ages 55+)


Sign up for an HSA here.

Author: James Denison