Acknowledging "numerous unanticipated administrative and
financial burdens," the IRS officially revoked its earlier
attempt to lower the 2018 health savings account (HSA) contribution
limits. In guidance issued on April 26, the IRS announced
that the 2018 HSA contribution limit for taxpayers with family
coverage will be $6,900 as originally announced in 2017 – not
the reduced $6,850 limit that was unexpectedly revealed earlier
this year.
The new guidance resolves months of confusion stemming from last
year's tax reform legislation, which changed the calculation of
the annual inflation adjustment to the contribution limits for
HSAs. In response to the new inflation adjustment calculations, the
IRS issued guidance on March 2, 2018, which reduced the
previously-announced family-coverage HSA contribution limit by $50
dollars. The mid-year timing of the reduction left employers and
individual taxpayers scrambling to correct contribution
levels—and, in some cases, to take
