Yesterday the Internal Revenue Service released Revenue Procedure Ruling 2018-27 and restored the $6,900 family HSA limit for 2018. This ruling overturns the guidance released on March 2, 2018 which lowered the limit to $6,850. (See our earlier HSA B&B Update)
This change is effective immediately. If you allow employees to make pre-tax HSA contributions you must allow them to change their elections.
If an employee has already received a corrective distribution they are permitted to repay the contribution to the HSA up to the $6,900 limit.
We have provided an updated 2018 IRS Limits document for your reference. We will keep you updated if any further guidance is provided. Please contact your dedicated Account team if you have any questions.
The information provided in this legislative update for our clients and colleagues is for general guidance only and is not intended to be, and does not constitute, tax or legal advice. We recommend that you consult with your tax and legal advisors for the interpretation