On March 5th, the IRS released new HSA contribution limits, among other tax related items. The most important thing to note is that these changes will only affect those who have family coverage under a high deductible health plan (HDHP). The new regulations do not affect those who have individual coverage. For 2018, the IRS has lowered the contribution limit for families. The new limit is $6,850. This is a $50 decrease from the previous limit.
First of all, it is important that employers inform their employees of the change. If you have a high deductible health plan, we can help you with that communication. Because of these changes, employees may have to change their contributions. In addition, those employees who have already maxed out their family contribution will need to contact their HSA provider. Since the limits have changed, employees may receive a tax penalty if they have over contributed. By contacting their HSA provider and requesting an excess contribution form, they can get a refund of the excess. In this way, they can avoid the tax penalty. Finally, this is a good time to review your employee’s HSA contributions. Make sure they know about the limits, as well as what they can use their funds for. We are happy to help with any educational materials you might need.
As always, if you have any questions, please contact us at email@example.com or by phone at 612-492-9320.