News & Press: Regulation

Requests for Relief from Decrease in Maximum HSA Contribution Limit

Wednesday, March 21, 2018   (0 Comments)
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The Tax Cuts and Jobs Bill enacted late last year changed in the way the IRS was to calculate cost-of-living increases.  The IRS recently released Revenue Procedure 2018-18 with these new recalculated limitations -  including a reduction in the maximum family HSA contribution for those with family coverage under an HDHP from $6,900 (as previously announced in Rev. Proc. 2017-37 on May 4, 2017) to a new limit of $6,850. This reduction of the maximum contribution limit has caused concern for employers that offer HSAs to their employees and to HSA trustees, custodians, and record-keepers.  As a result, people are beginning to contact the Treasury Department asking for some sort of relief from this change.  

Yesterday, Congressmen Mike Kelly  (R-PA) and Erik Paulsen (R-MN) wrote to Treasury Secretary Mnuchin asking that the decrease in the HSA contribution amount not take effect in 2018.  ECFC wrote to the Benefits Tax Counsel at the Treasury Department last week requesting transition relief for the return of contributions in excess of the newly reduced maximum contribution amount.  (The Benefits Tax Counsel told me that they were studying the issue and thanked us for our input.)  Other organizations, including the ABA HSA Council, have written or are planning to write the Treasury Department about their concerns about the reduction in the maximum HSA contribution amount and asking for the Department to provide some relief. 

Download the letter from Reps. Kelly and Paulsen, the letter from ECFC and the letter from the HSA Council.  We will keep ECFC membership informed of the status of any relief that the Treasury Department provides.

William F. Sweetnam, Jr
ECFC Legislative and Technical Director