- 2018 Family HSA Contribution Limit Reduced - 3/7/18
- On March 5, 2018, the Internal Revenue Service (IRS) reduced the 2018 maximum HSA family contribution limit from $6,900 to $6,850. This reduction does not change the 2018 individual HSA contribution limit which is still $3,450.
Suggested Next Steps:
- Members who have already contributed $6,900 for 2018 should complete the HSA Withdrawal Request form, indicating that the distribution reason is Excess Contribution Removal, and return to SelectAccount.
- Members who have elected to contribute the maximum contribution over the course of 2018 should contact their employer to adjust their 2018 HSA family election to $6,850.
- Members should take action before Dec. 31, 2018 to avoid tax implications.
- Proposed Legislation To Increase HSA Contribution Limits - 11/7/17
- Senators Orrin Hatch (R-Utah) and Kevin Brady (R-Texas) introduced legislation to extend Affordable Care Act (ACA, also known as Obamacare) insurance subsidies through 2019. The legislation also proposes increasing the maximum health savings account (HSA) contribution limits to the plan deductible or out of pocket limit.
At this time, contributions limits have not changed for HSAs; the current 2018 HSA contributions limits remain at $3,450 for single and $6,900 for family.
Timing of when Congress will vote on the legislation is to be determined. SelectAccount is continuing to monitor events.
- U.S. Congress passes new tax plan - 12/21/17
- On Dec. 20, Congress approved the final version of the tax bill. Before becoming law, the bill must be signed by President Donald Trump. If signed into law, this legislation impacts fringe commuter benefits. Meaning, as of January 1, 2018, employers will no longer receive a tax deduction for providing parking or transit pass contribution assistance to employees. Employees who pay for their own transportation cost are still permitted to use pre-tax income on those expenses.
SelectAccount will continue to monitor events surrounding the tax bill
- President Trump signs Affordable Care Act (ACA) Executive Order - 10/18/17
- On Oct. 12, President Donald Trump signed an executive order that directs federal regulators to issue new rules regarding health reimbursement arrangements (HRAs), association group health plans, and short-term health policies. President Trump has asked agencies to issue new regulations broadening the use and availability of HRAs, specifically allowing for non-group HRAs. The agencies have 120 days to issue proposed regulations.
Currently, the existing rules surrounding HRAs have not changed. SelectAccount is continuing to monitor events.