The Internal Revenue Service (IRS) announced yesterday that annual family Health Savings Accounts (HSA) contribution limits were being restored to $6,900. This announcement, Revenue Procedure 2018-27, marks a reversal of a March 2 IRS announcement that annual family HSA contributions would be reduced by $50 as a result of a change in the limit calculation included in the Tax Cuts and Jobs Act passed at the end of 2017.

The relief is the result of "numerous unanticipated administrative and financial burdens," including the fact that some individuals had already contributed the originally announced 2018 maximum to their HSA before the decreased 2018 limit was announced.

Employers are encouraged to work with their HSA administrator to identify employees who could be impacted by the change and determine whether contribution adjustments need to be made.

 

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