Last year, the IRS published the calendar year 2018 health
savings account contribution limits for individual and family
coverage. Ten months later and well into the start of the 2018
year, in response to changes under the 2017 Tax Cuts and Jobs Act,
the IRS reduced by $50 the 2018 limit on HSA contributions for
family coverage.
Although the HSA contribution limit for individual coverage
remains at $3,450, the maximum contribution for family coverage
dropped from $6,900 to $6,850. The reduction took effect
immediately.
The amount of the reduction is small, but employees with family
coverage in an HSA may feel the effects in their tax bills for
2018. To the extent contributions to an HSA exceed the annual
limit; the amount of those excess contributions is included in the
employee's taxable income and subject to an additional 6%
excise tax.
