The IRS Reduces HSA Family Limits

The Tax Cuts and Jobs Act has impacted the tax planning and preparation for individuals and businesses.  The IRS has reduced Health Savings Account (HSA) family limits and our team is working around the clock to stay on top of the changes to this Act as they occur.  We will keep you updated.

A recent IRS Bulletin, 2018-10, describes changes to the Health Savings Accounts (HSA) section, lowering the limit for family coverage. Individuals with self-only coverage are not affected by this change.

This means that for the calendar year 2018, annual limitations on deductions under the Internal Revenue Code Section 223(b)(2)(B) for an individual with family coverage under a “high-deductible” health plan is down from $6,900 to $6,850.

The definition of a “high-deductible” health plan is one with an annual deductible that is not less than $2,700 for family coverage, and the annual out-of-pocket expenses do not exceed $13,300. Out-of-pocket expenses include deductibles, co-payments, and other related expenses, but do not include premiums. This definition has not changed since the previous IRS announcement relating to HSAs.

If you have any questions, please contact us at 239-433-5554.