The IRS recently released Revenue Procedure 2017-37, which outlines the 2018 cost-of-living contribution and coverage adjustments for HSAs, as required under Code Section 223(g). The procedure also includes the minimum deductible and maximum out-of-pocket expenses for the high-deductible health plans (HDHPs).
According to the procedure, the amount that individuals may contribute to their HSAs for self-only coverage will increase by $50 (from $3,400 in 2017 to $3,450 in 2018) in 2018, while HSAs linked to family coverage will rise by $150 (from $6,750 in 2017 to $6,900 in 2018). Rate changes reflect cost-of-living adjustments.
|Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans|
|HSA contribution limit (employer + employee)||Self-only: $3,450
|HSA catch-up contributions (age 55 or older)*||$1,000||$1,000||No change**|
|HDHP minimum deductibles||Self-only: $1,350
|HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)||Self-only: $6,650
|* Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
** Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require statutory change.
Questions? Contact your Cornerstone representative today for more information!