HSA Limit Changes for 2018

The IRS released 2018 limits for Health Savings Accounts (HSAs) and qualified High Deductible Health Plans (HDHPs).

The newly adjusted limits for 2018 must be adhered to in order for a health plan to maintain its qualified status as an HDHP and to remain compatible with an HSA. The IRS increased the annual contribution limits for 2018, both for an individual with self-only coverage and for an individual with family coverage.

The chart below provides the HSA limits for 2017 side-by-side with the inflation adjusted amounts for 2018:

Reminder: Post-Deductible HRAs may be affected

Certain qualified HDHPs incorporate a post-deductible Health Reimbursement Arrangement (HRA) design, which allows an HRA to reimburse eligible expenses after the minimum deductible amount has been satisfied, without rendering the plan incompatible with an HSA. Such a design feature may be enticing to plan sponsors who want to offer enrollees the strong tax incentives of an HSA, but who would also like to self-fund a portion of the health plan under an HRA. Plans that utilize such a design should be aware of the new minimum deductible limits for 2018, and may need to adjust accordingly. 

If you would prefer to read the IRS publication first-hand, please see the following link: https://www.irs.gov/pub/irs-drop/rp-17-37.pdf

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Posted on May 22, 2017 and filed under HSA, HRA.