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
YesFamily only? Individuals unchanged?
I didn’t find anything on the IRS site which is odd.
Only this: https://www.plansponsor.com/tax-reform-changes-hsa-limits-family-coverage/
No changes to individual limits.
Wow. Unbelievable. Thank you chained CPI.
The site above does reference the IRS bulletin that does show the new amount.
https://www.irs.gov/pub/irs-irbs/irb18-10.pdf
SHRM is usually a reliable source for stuff like this: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.
https://www.shrm.org/resourcesandto...owers-2018-family-hsa-contribution-limit.aspxThe 2018 contribution limit for health savings accounts (HSAs) linked to family coverage will be $6,850—not $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.
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).
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.
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.
I know little to nothing about HSAs. But I thought that the 6% excess contribution excise taxes on IRA contributions was assessed every year that the excess remained in the account. Some of the posters above imply that it is a one-time tax. Are HSAs different from IRAs in this regard?