On Monday the IRS announced a reduction to the 2018 Health Savings Account (HSA) family contribution limit to $6,850 from the previously set amount of $6,900. If you have already contributed the maximum amount to your Family HSA for 2018, this could mean that election changes may be required and excess contributions may need to be returned. Contact Participant Services for more information.
This change does not impact contribution limits for individual HSAs, Flexible Spending Accounts (FSAs), Commuter Reimbursement Accounts (CRAs) or QSEHRAs.
FLEXIBLE SPENDING ARRANGEMENTS (FSAs)
Salary Reduction Annual Limit
Employee contributions to employer-sponsored health flexible spending arrangements (FSAs) will increase to $2,650 (up $50 from 2017).
|Salary Reduction Annual Limit||$2,550||$2,550||$2,600||$2,650|
HEALTH SAVINGS ACCOUNTS (HSAs)
Annual Contribution Limitation
Self-only coverage under a high deductible health plan is $3,450 (up $50 from 2017). Family coverage under a high-deductible health plan is $6,900 (up $150 from 2017).
For calendar year 2018, a “high-deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,650 for self-only coverage (up $100 from 2017) or $13,300 (up $200 from 2017) for family coverage.
|Minimum deductible amounts for the qualifying high-deductible health plan (HDHP)|
|Maximum contribution levels|
|Catch up allowed for those 55 and over||$1,000||$1,000||$1,000||$1,000|
|Maximums for HDHP out-of-pocket expenses|
QUALIFIED SMALL EMPLOYER HEALTH REIMBURSEMENT ARRANGEMENTS (QSEHRAs)
For tax year 2018, to qualify as a QSEHRA, the total amount of payments and reimbursements cannot exceed $5,050 per employee (up from $4,950 for 2017) or $10,250 per family (up from $10,000 for 2017).
Health Saving Account Contributors will be able to put away $50 more in 2018 ($3450) and an additional $150 ($6900) for family. The $1000 catchup does not change.
Great article byLoretta Metzger, Employee Benefit Advisor, 3/13/17
As the cost of healthcare zooms upward, many employers are shifting to high-deductible health plans, which include a lower monthly premium and, as the name implies, a higher deductible. In 2016, 29% of all insured employees were enrolled in HDHPs — an increase of 9% since 2014, according to Kaiser Family Foundation. Often, employers offer health savings accounts along with HDHPs to enable employees to save money tax-free for medical expenses.