2018 HSA Guidelines Released

2018 HSA Guidelines Released by the Internal Revenue Service (IRS). These guidelines outline the inflation-adjusted contribution, deductible, and out-of-pocket spending limits for Health Savings Accounts HSAs and high-deductible health plans HDHPs for calendar year 2018.

2018 HSA Overview

  • Minimum deductible:
    • Compliant HSA plan examples:
      • One plan for self-only and family with an embedded deductible, the minimum deductibles are: $2,700 individual and $2,700 family
      • One plan for self-only and family with a non-embedded deductible, the minimum deductibles are: $1,350 individual and $2,700 family  
      • $1,350 for self-only coverage (versus $1,300 in 2017)
      • $2,700 for family coverage (versus $2,600 in 2017)
      • $2,700 for embedded individual deductible (versus $2,600 in 2017)
    • Out-of-pocket maximum:
      • $6,650 for self-only coverage (versus $6,550 in 2017)
      • $13,300 for family coverage  (versus $13,100 in 2017)
      • $6,650 for embedded individual out-of-pocket maximum (versus $6,550 in 2017)
      • Compliant HSA/ACA plan examples:
        • One plan for self-only and families with an embedded out-of-pocket maximum, the maximum amounts are: $6,650 individual and $13,300 family
        • One plan for self-only and family with a non-embedded deductible, the maximum amounts are: $6,650 individual and $7,350 family
    • Watch for the intersection of the HSA and Affordable Care Act (ACA) rules. The 2018 ACA maximum is $7,350 for individual and $14,700 family (versus $7,150 individual and $14,300 family in 2017).
  •  HSA contribution limits:
    • $3,450 for self-only coverage (versus $3,400 in 2017)
    • $6,900 for family coverage (versus $6,750 in 2017)
    • The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.

Things to consider:

IRA to HSA transfer………..Consumers are able to make a one-time, tax-free trustee-to-trustee transfer of IRA funds into an HSA. The individual must remain enrolled in high-deductible health plan and eligible for an HSA for a 13-month test period after the fund transfer. The funds transferred from the IRA apply to the annual HSA maximum contribution limit. The contribution must be made directly by the IRA trustee.

FSA  2 1/2 month grace period………….Only Limited Purpose Flexible Spending Account may be offered alongside the HSA without impacting a member’s eligibility for HSA contributions. Consumers in a full purpose FSA can contribute to an HSA if their FSA balance is zero at the end of the preceding year.

 

Disclaimer: This web page 2018 HSA Guidelines Released may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, IRS, or accountant.