IRS ANNOUNCES FAMILY CONTRIBUTION CHANGES FOR HSAs
On March 5, the IRS published Internal Revenue Bulletin (IRB) 2018-10 that contains Revenue Procedure (Rev. Proc.) 2018-19.
Effective for calendar year 2018, the family contribution limit for HSAs has been lowered to $6,850 from the previously set amount of $6,900.
This change came as a result of the tax reform law (P.L. 115-97) that changed the annual inflation adjustment factor from the Consumer Price Index (CPI) to a new factor known as ‘chained CPI,’ This change was anticipated to slow the rate of changes in all programs under the tax code, including HSAs.
Sterling has been working with specific employers and accountholders who need adjustments. Thank you.
