On April 26, 2018, the IRS reverted the 2018 Health Savings Account (HSA) limits back to the originally published amounts released in May of 2017.
The current rates are: $3,450 for individuals with self only coverage; and $6,900 for family coverage.
After reducing the limits in March of 2018, the IRS reinstated the higher annual limit in April stating, "... 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." (Rev. Proc. 2018-27).
Timeline of 2018 limit changes:
- May 4, 2017 - the IRS released original 2018 rates (Rev. Proc. 2017-37)
- December 22, 2017 - tax reform legislation was released: “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the act), Pub. L. 115-97, 131 Stat. 2504
- March 25, 2018 - In response to the above, the IRS released modified annual limits for HSA family coverage (from $6,900 to $6,850) (Rev. Proc. 2018-18)
- April 26, 2018 - IRS released notice (Rev. Proc 2018-27) which reinstated original HSA family coverage annual limit (of $6,900)
On May 10, 2018, the IRS released Revenue Procedure 2018-30, which provided the HSA limits for the calendar year of 2019.
The 2019 rates are: $3,500 for individuals with self only coverage; and $7,000 for family coverage.
Other 2019 change: HDHP maximum out-of-pocket limits have increased to: $6,750 for self-only coverage and $13,300 for family coverage.
For more information on HSA limits for 2018 and 2019, or to find additional information regarding Health Savings Accounts, please visit the IRS website by clicking here.
- (2018). U.S, Internal Revenue Service. Rev. Proc. 2018-27. Accessed 17 May 2017. https://www.irs.gov/pub/irs-drop/rp-18-27.pdf
- (2017). U.S, Internal Revenue Service. Rev. Proc. 2017-37. Accessed 17 May 2017. https://www.irs.gov/pub/irs-drop/rp-17-37.pdf
- (2017). Office of the Law Revision Counsel. United States Code. Pub. L 115-97. Dec. 22, 2017. 131 Stat. 2054. Accessed 17 May 2018. https://uscode.house.gov/download/bills/115-1/115-97_pp_2054-2092_Title-I-Subtitle-A.pdf
05 March 2018. U.S, Internal Revenue Service. Internal Revenue Bulletin: 2018-10. Accessed 17 May 2018.
- (2018). U.S, Internal Revenue Service. Rev. Proc. 2018-30. Accessed 17 May 2017. https://www.irs.gov/pub/irs-drop/rp-18-30.pdf
Disclaimer: These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers of the IBS Blog should contact their legal or tax professionals to discuss how these matters relate to their individual circumstances.