IRS Releases Revised Cost-of-Living Adjustments Impacting HSA Contributions (& Other Benefits) in 2018

March, 6, 2018

One of the provisions in the Tax Cuts and Jobs Bill enacted late last year was a change in the way the IRS was to calculate cost-of-living increases.  Today, the IRS released Revenue Procedure 2018-18, which provides these new recalculated limitations. 

The following benefit limits have been affected:

Health Savings Accounts

The maximum family HSA contribution for those with family coverage under an HDHP has decreased from $6,900 (as previously announced in Rev. Proc. 2017-37 on May 4, 2017) to a new limit of $6,850. This could mean that election changes may be required and excess contributions may need to be returned (e.g., for individuals who have already contributed the full family amount). 

All other contribution limits, HDHP limits and out-of pocket limits remain the same for 2018.  

Adoption Assistance

The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special needs has been

decreased from $13,840 to $13,810.

Other Benefits

Other benefit limits (e.g., FSA, dependent care and transit) were not impacted. 
 
Consult IRS Revenue Procedure 2018-10 for more information.

If you have an HSA or adoption plan with Chard Snyder, we will follow up with more information regarding how you may be affected by these changes.