Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
The 2018 HSA contribution is reduced in March
Old 03-07-2018, 07:06 AM   #1
Dryer sheet aficionado
 
Join Date: Nov 2017
Posts: 44
The 2018 HSA contribution is reduced in March

IRS just reduced the 2018 HSA for family from $6,900 to $6,850. For those of us who made the full contribution already (like me), we now have excess contribution that needs to be removed with income on before the due date of tax return
__________________

Cpadave is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-07-2018, 07:11 AM   #2
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 3,006
Wow. Unbelievable. Thank you chained CPI.
__________________

JoeWras is offline   Reply With Quote
Old 03-07-2018, 07:12 AM   #3
Full time employment: Posting here.
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 905
Thanks for the heads up.
__________________
Retired 9am 1/17/2018 - 56yo
Jerry1 is online now   Reply With Quote
Old 03-07-2018, 07:16 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,912
Family only? Individuals unchanged?
RunningBum is offline   Reply With Quote
Old 03-07-2018, 07:18 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
I didn’t find anything on the IRS site which is odd.

Only this: https://www.plansponsor.com/tax-refo...mily-coverage/

No changes to individual limits.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 07:19 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
Quote:
Originally Posted by RunningBum View Post
Family only? Individuals unchanged?
Yes
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 07:22 AM   #7
Dryer sheet aficionado
 
Join Date: Nov 2017
Posts: 44
Yes. Here is the IRS link

https://www.irs.gov/irb/2018-10_IRB
Cpadave is online now   Reply With Quote
Old 03-07-2018, 07:22 AM   #8
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,633
Quote:
Originally Posted by audreyh1 View Post
I didnít find anything on the IRS site which is odd.

Only this: https://www.plansponsor.com/tax-refo...mily-coverage/

No changes to individual limits.
The site above does reference the IRS bulletin that does show the new amount.

https://www.irs.gov/pub/irs-irbs/irb18-10.pdf
zinger1457 is offline   Reply With Quote
Old 03-07-2018, 07:23 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
Quote:
Originally Posted by JoeWras View Post
Wow. Unbelievable. Thank you chained CPI.
Oops. That must be it!

But I thought chained CPI applies to future years, not 2018. Most of the legislation established new levels and then said chained CPI for that limit there after.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 07:24 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
Quote:
Originally Posted by zinger1457 View Post
The site above does reference the IRS bulletin that does show the new amount.

https://www.irs.gov/pub/irs-irbs/irb18-10.pdf
Thanks, I didn’t find it initially. In future, it really helps folks here if the OP gives a link to their reference with information like this.

It’s on page 400 of the bulletin, by the way.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 07:36 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
Quote:
Originally Posted by Cpadave View Post
Yes. Here is the IRS link

https://www.irs.gov/irb/2018-10_IRB
Search on HEALTH SAVINGS ACCOUNTS
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 07:40 AM   #12
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 3,006
Quote:
Originally Posted by audreyh1 View Post
Oops. That must be it!

But I thought chained CPI applies to future years, not 2018. Most of the legislation established new levels and then said chained CPI for that limit there after.
SHRM is usually a reliable source for stuff like this:
Quote:
The 2018 contribution limit for health savings accounts (HSAs) linked to family coverage will be $6,850ónot $6,900, as the IRS had previously announced. The IRS recalculated the limit because the Tax Cuts and Jobs Act that passed at the end of 2017 applies the so-called chained consumer price index (chained CPI) to increases in HSA and a few other employee benefit contribution limits.
https://www.shrm.org/resourcesandtoo...ion-limit.aspx
JoeWras is offline   Reply With Quote
Old 03-07-2018, 07:57 AM   #13
Recycles dryer sheets
 
Join Date: Jul 2016
Location: Saint Paul
Posts: 63
I'm also not seeing the additional $1000 we were able to add if over age 55 - is that gone? (I'm a single filer, don't know if $1000 applied to families also).
Paracelsus is offline   Reply With Quote
Old 03-07-2018, 08:23 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 18,017
Quote:
Originally Posted by Paracelsus View Post
I'm also not seeing the additional $1000 we were able to add if over age 55 - is that gone? (I'm a single filer, don't know if $1000 applied to families also).
No, that is not gone AFAIK. That additional $1000 is not indexed for inflation, so is not adjusted every year.

I believe they are only referring to limits that are set each year.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 03-07-2018, 08:42 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,912
I hope not. I'm in the process of moving my HSA, after already maxing out my single contribution. It would probably be a huge pain to back out $500 or $1000 across the two places. Sounds like I don't have to, but this is ridiculous.
RunningBum is offline   Reply With Quote
Old 03-07-2018, 12:40 PM   #16
Recycles dryer sheets
 
Join Date: May 2008
Location: Treasure Coast
Posts: 393
Thanks for the heads-up. We have accounts at HSA Bank/TD Ameritrade and deposited using the previous limits. To get the $50 back out, I had to call HSA Bank (and wait an annoying amount of time) while they emailed me a form to complete. There is not a way to do it online apparently.
45th Birthday is offline   Reply With Quote
Old 03-07-2018, 02:02 PM   #17
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 424
Quote:
Originally Posted by Cpadave View Post
IRS just reduced the 2018 HSA for family from $6,900 to $6,850. For those of us who made the full contribution already (like me), we now have excess contribution that needs to be removed with income on before the due date of tax return
I am in the same situation like you. I will not bother to rollback that $50 and go through hassle of paper work. Instead I'll do following at tax time next year.

"Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions. Next year you may want to consider contributing less than the annual limit to you HSA to make up for the excess contribution during the previous year."

This will cost me extra $3 next year at tax filing.
__________________
Retired at age 52 on 12/1/2016
AA:60/40 WR:3% until 2022 then 4% is the plan
retire2020 is offline   Reply With Quote
Old 03-07-2018, 03:22 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,117
I wonder if you could make the case that since you made the HSA contribution up to the limit that was announced by the IRS as of the date that you made it that it is fully allowable.

https://www.irs.gov/pub/irs-drop/rp-17-37.pdf

Not worth the effort but given the modest difference I do wonder they they bothered to change it and didn't grandfather 2018 contutions made before the date they announced the lower amount. I guess that would have been too sensible a solution.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 03-07-2018, 03:44 PM   #19
Dryer sheet aficionado
 
Join Date: Jul 2013
Posts: 32
Thanks for the alert. Lucky for me I was dragging my feet on doing the contribution so won't have to worry about any adjustments. Not the first time mild procrastination results in a win.
Scubamax is offline   Reply With Quote
Old 03-07-2018, 03:48 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 8,566
Doesn't apply to me since i'm s single contributor and not family. Plus, I don't make one big contribution but do so one month at a time.

Didn't know such a switch-a-roo on contribution limit rules even allowed. Learned something new.
__________________

__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Reply

Tags
hsa


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
First Time Posting - ER March 30 2018 sharpeben Hi, I am... 5 01-21-2018 08:33 PM
2018 Premium Increase Horizon BCBS HSA retire2020 Health and Early Retirement 7 10-24-2017 12:02 PM
HSA contribution question Notmuchlonger Health and Early Retirement 7 01-29-2008 06:59 PM
Make HSA Contribution if Not Paying Tax? TromboneAl FIRE and Money 11 01-08-2008 03:20 PM
HSA Contribution Timing TromboneAl FIRE and Money 7 12-13-2005 04:20 PM

 

 
All times are GMT -6. The time now is 06:25 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.