2018 HSA Limit for Family Coverage Reduced

On March 5, 2018, the IRS released Revenue Procedure 2018-18 to announce changes to certain tax limits for 2018, including a reduced contribution limit for health savings accounts (HSAs).

Why was the limit changed?
The new tax law enacted late last year—the Tax Cuts and Jobs Act—changed the consumer price index for making annual adjustments to the HSA limits. Using the new index, the IRS reduced one of the HSA/high deductible health plan (HDHP) limits for 2018—the HSA contribution limit for individuals with family HDHP coverage.

IRS CONFIRMS ACA MANDATE PENALTIES STILL EFFECTIVE

The IRS Office of Chief Counsel has recently issued several information letters clarifying that the ACA's individual and employer mandate penalties are still effective. These letters were issued in response to confusion over President Donald Trump’s executive order directing federal agencies to provide relief from the burdens of the ACA. This ACA Compliance Bulletin summarizes the IRS' information letters.