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News & Thought Leadership

3 Things You Should Know About the Recent IRS Bulletin No. 2018–10

On Monday, March 5th, the IRS released Bulletin No. 2018–10. Here are the key takeaways:

  1. The $6,900 maximum family contribution limit to a Health Savings Account (HSA) will be reduced to $6,850 in 2018. This change applies immediately: Any family contribution over $6,850 to an HSA in the year 2018 could be liable to not only taxes but stiff penalties.

 

  1. This change DOES NOT affect the individual contribution limit. The limit for 2018 will remain at $3,450. Likewise, HSA related limits like minimum deductible for an HSA-qualified high deductible health plan (HDHP), maximum out of pocket limits for HSA-qualified plans, and the post-age 55 contribution catch up limit, will remain the same.

 

  1. Adopted Assistance Programs have been impacted through this IRS bulletin. The excluded amount from an employee’s gross income for the adoption of a child with special needs is $13,810 ($30 decrease). Additionally, the maximum amount that can be excluded from an employee’s gross income for the amounts paid or expenses incurred by an employer for qualified adoption expenses furnished pursuant to an adoption assistance program for other adoptions by the employee is $13,810 ($30 decrease).

 

To learn more about the IRS bulletin read Connect Your Care’s blog

Follow this link to get to the IRS Bulletin

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