IRS Revises 2018 Contribution Limit (again)

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In another unexpected move, the IRS revised its previous ruling on April 26th and moved the 2018 family HSA contribution limit back to $6,900.

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In another unexpected move, the IRS revised its previous ruling on April 26th and moved the 2018 family HSA contribution limit back to $6,900.

IRS HSA Contribution Revision

In March, the IRS had previously revised the 2018 family maximum contribution from $6,900 to $6,850. The previous change, as explained by the IRS, was in part due to the new rollout of the Tax Cuts and Jobs Bill (P.L. 115-97) which passed in December 2017.

The most recent revision was technically a relief for taxpayers affected by the reduction of 2018 maximum deductible HSA contributions (from $6,900 to $6,850).

According to the IRS, the $6,900 family maximum contribution will remain in effect for 2018. This also means any HSA account holders, who qualify for the family contribution limits, can contribute the 2018 family HSA maximum for 2018, even if they had not maximized their HSA contribution to date.

Therefore any qualified HSA family account holder can contribute up to $6,900 in 2018. This means ($50) more tax-free saving for families this year. Thank you, IRS (and please – no more changes).

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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