In the March 7, 2018 edition of the blog, we reported that as a result of a change in the 2017 tax legislation relating to the calculation of the cost of living adjustment to the annual dollar limit on contributions to a health savings account (“HSA”), the Internal Revenue Service (“IRS”) had announced that the maximum amount that may be contributed for 2018 to an HSA by an individual who has family coverage under a high deductible health plan was being reduced from $6,900 to $6,850.
The IRS previously had announced that the 2018 limit was $6,900 and, predictably, the possibility of having to address the $50 cutback presented employers and HSA custodians with a fair measure of administrative complexity both as to individuals who had already contributed $6,900 and those who had made salary reduction elections based upon the $6,900 limit. Continue reading “The IRS Says Never Mind to the Retroactive Reduction in the 2018 Limit for Contributions to a Health Savings Account”
Buried in the December 2017 tax legislation is a provision that changes the method that the Internal Revenue Service (“IRS”) uses to determine cost of living adjustments to annual dollar limits applicable to health plans and some other benefits.