Late last week, the IRS released Revenue Procedure 2018-27 that allows health savings account (HSA) holders to treat $6,900 (rather than the previously announced in-year decrease to $6,850) as the maximum annual family HSA contribution limit for 2018.
The previous $50 decrease was the result of inflation adjustments by the IRS. Now, after taking feedback and criticism from major stakeholders, the IRS has reinstituted the prior limit of $6,900. As a part of their announcement the IRS stated, “In response to these concerns, the Treasury Department and the IRS have determined that it is in the best interest of sound and efficient tax administration to allow taxpayers to treat the $6,900 annual limitation originally published in Rev. Proc. 2017-37 as the 2018 inflation adjusted limitation on HSA contributions for eligible individuals with family coverage under an HDHP.”
Those contribution limit changes have been updated in the Clarity Wealthcare Portal, and account holders can now contribute up to the limit.
For more information on tax reform, please visit the Tax Reform page on IRS.gov.