The Tax Cuts and Jobs Act permanently changes health savings account (HSA) contributions to index to the chained consumer price index for urban consumers (C-CPI-U) starting 2018. The IRS had previously calculated 2018 HSA contribution limits under the regular CPI to be $3,450 for single coverage and $6,900 for family coverage.
After recalculating under the new law, the IRS announced on Monday, March 5, in page 17 of Revenue Procedure 2018-18 that the 2018 family HSA contribution limit must decrease by $50 to $6,850. Anyone that elected $6,900 will have their contribution automatically adjusted to reflect the lower amount and be provided a communication to explain the reason for the automatic adjustments. The single contribution limit remains unchanged.
If you have any questions, please contact Human Resources at email@example.com or 817-257-7790.