IRS Announces 2018 Inflation Adjusted Amounts for Health Savings Accounts (HSAs)

The IRS has announced 2018 HSA limits as follows:

Annual contribution limitation. For calendar year 2018, the annual limitation on deductions for HSA contributions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,450 (up from $3,400 in 2017), and the annual limitation on deductions for HSA contributions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,850 (up from $6,750 in 2017).

High deductible health plan. For calendar year 2018, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage (up from $1,300 and $2,600 in 2017), and the
annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage (up from $6,550 and $13,100 in 2017).

Rev. Proc. 2017-37

Rev. Proc. 2018-18 (revising the previously-published annual limitation on deductions under Code § 223(b)(2)(B) for 2018 for an individual with family coverage under a high deductible health plan from $6,900 to $6,850)

Author: Erwin Kratz

Erwin Kratz practices exclusively in the areas of ERISA and employee benefits law, focusing on tax and regulatory matters relating to qualified and nonqualified deferred compensation and welfare benefits.