New HSA/HDHP Limits for 2018
The IRS has announced the inflation-adjusted limits for health savings accounts and high deductible health plans for 2018. Only the first limit will be increasing. Below is a summary:
The American Health Care Act currently pending before Congress, would make two changes impacting the above limits. First, the maximum annual contribution limit would be increased to match the maximum out-of-pocket limit. In other words, for 2018, instead of a maximum annual contribution limit of $3,450 single/$6,900 family, the annual contribution limits would be $6,650 single/$13,300 family. Second, regarding the annual catch-up, if the HSA account holder is married and the spouse is also age 55, both spouses could make a $1,000 catch-up contribution to the same HSA beginning in 2018.
If you have any questions regarding HSAs or high deductible health plans or the new limits, please contact the author or any member of the Employee Benefits practice group.