HSAs can be valuable to both employees and your company. Choosing to contribute to employees’ HSAs and providing information on how to use them can help attract and retain employees.
IRS announces family contribution changes for HSAs
Today, 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. We are in the process of updating Wex Health Administration, Portal and Mobile with the new limits.
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.