May 8, 2017

IRS Announces 2018 HSA Amounts

by Ben Lupin and Rich Gisonny, Willis Towers Watson

On May 4, 2017, the IRS released Revenue Procedure 2017-37 announcing the official 2018 inflation adjusted amounts for health savings accounts (HSAs) as determined under IRC ยง 223.

This includes the maximum annual HSA contribution amount, the minimum annual deductible for a high deductible health plan (HDHP), and the maximum annual out-of-pocket expense limits for a HDHP. These amounts are updated annually to reflect the cost-of-living adjustments.

The following limits apply for calendar year 2018 for HSAs and HSA-qualifying HDHPs.

The 2018 HSA catch-up contribution amount for participants attaining age 55 by 12/31/2018 remains $1,000. This amount is fixed by statute, and is the same catch-up contribution amount that applied in 2017.

This update has been provided by Willis Towers Watson. It is for informational purposes only and may not be used or relied upon as legal advice.