IRS Reduces Maximum HSA Contribution

The IRS has reduced the maximum amount that an individual enrolled in family health coverage can contribute in 2018 to a health savings account (HSA).

On March 5, 2018, the IRS announced that an individual enrolled in family coverage can contribute no more than $6,850 to an HSA in 2018 – $50 less than the $6,900 maximum previously set. Any contribution above the new maximum could be subject to taxes and penalties.

The new maximum contribution was announced in the IRS Internal Revenue Bulletin No. 2018-10. The maximum HSA contribution for an individual enrolled in self-only coverage remains $3,450 for 2018.