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Payroll Today

$6,850 maximum HSA contribution for 2018? Never mind

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Alice Gilman

by on
in Payroll Today

On second thought, no. Ever since the IRS’ midyear reduction to the maximum health savings account contribution, to $6,850, from $6,900, employees, employers and HSA custodians have been clamoring for guidance on what to do with that extra $50, plus earnings.

The IRS now says forget it—the maximum HSA contribution for employees with family coverage under high deductible health plans remains $6,900 for 2018.

The IRS has also provided guidance to employers and employees who took the extra $50.

Background

The IRS usually releases the HSA and high deductible amounts for the next year in the spring. This year, employees with family coverage under high deductible health plans were told they could contribute up to $6,900 into their HSAs.

Then the Tax Cuts and Jobs Act came along with a new way to measure inflationary changes. The IRS had to reduce the 2018 maximum to $6,850 as a result.

Hitch: Lots of employees had alread...(register to read more)

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