Clear Perspective Insight: March 2018 Changes to HSA Plan Rules

IRS Bulletin impacts employers with HSA Plans

Important Update

H.R. 1, the “Tax Cuts and Jobs Act”—P.L. 115-97 was signed into law by President Trump on December 22. The law impacts the maximum an individual can set aside in their HSA bank account for 2018 if they are covering their family.    On May 4, 2017 the IRS (Revenue Procedure 2017-37) released the inflation adjusted HSA contribution limits for 2018.  At that time the maximum individual pre-tax contribution (employee and employer combined) was $3,450 with the family maximum of $6,900 (employee and employer combined).  H.R. 1/P.L. 115-97 included a provision dealing with the Consumer Price Index (CPI).  Under the new law CPI was changed to C-CPI-U. The term ‘C-CPI-U’ means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). This change has impacted the adjustment made to HSA contributions for 2018.  On Monday, the IRS released Internal Revenue Bulletin (IRB) 2018-10.  In that bulletin, the IRS lowered the maximum family HSA contribution for 2018.

The individual maximum HSA contribution for 2018 has remained unchanged at $3,450 however the family maximum was lowered to $6,850 from $6,900.  Please be sure to adjust the per paycheck contribution for anyone electing the maximum family amount to the $6,850 for 2018.

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