Your buds in black (or sometimes very, very dark gray) suits at the IRS at the intersection of Maryland and Virginia have recently provided some “new new” guidance regarding health savings accounts (HSAs). This replaces some previously released info earlier in the year. Try to keep up, will ya?
So the maximum contribution limit for those with family coverage is now $6,850 for 2018, still an increase from $6,750 in 2017. Note: This change reduces the previously-released 2018 amount of $6,900 by $50 for the 2018 taxable year.
Just so we’re all singing from the same hymnal here, a health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either HDHPs or standard health plans.
And the good news is that the maximum contribution limit is going up $100 for the next year. Please celebrate responsibly (and accordingly). At Moore Benefits, we think knowing the limits helps you rule your world. If you have any questions about this stuff, my team of employee benefits and health insurance experts is always just a phone call or e-mail away.