HSA Limits Revert to Previous Levels

On March 2, 2018, it was announced that the Health Savings Account (HSA) limit for family plans would be reduced by $50 to $6,850, from the originally published 2018 limit of $6,900. The Internal Revenue Service (IRS) has now published Revenue Procedure (Rev. Proc.) 2018-27, which has revised the amount back up to $6,900, adding the $50 back into the limit, and returning it to pre-March 2018 levels. See the new Revenue Procedure here.

Rev. Proc. 2018-27 also clarifies how to handle situations where a participant has already received a distribution from their HSA of an excess contribution based on the change to the $6,850 limit.