Insights

IRS Publishes 2018 HSA Contribution Limits and Qualifying HDHP Deductible and Maximum Out-of-Pocket Limits


On May 4, 2017, the IRS published Rev. Proc. 2017-37, which provides the 2018 inflation-adjusted amounts for HSAs and HSA-qualifying HDHPs. According to the revenue procedure, the 2018 annual HSA contribution limit will increase to $3,450 (up $50 from 2017) for individuals with self-only HDHP coverage and to $6,900 (up $150 from 2017) for individuals with family HDHP coverage (i.e., anything other than self-only HDHP coverage).

For qualified HDHPs, the 2018 minimum statutory deductibles have increased to $1,350 (up $50 from 2017) for self-only coverage and $2,700 (up $100 from 2017) for family coverage. The 2018 maximum out-of-pocket limits also increased to $6,650 (up $100 from 2017) for self-only HDHP coverage and $13,300 (up $200 from 2017) for family HDHP coverage (i.e., anything other than self-only HDHP coverage). Out-of-pocket limits on expenses include deductibles, copayments and coinsurance, but not premiums.

The 2018 limits may impact employer benefit strategies, particularly for employers coupling HSAs with HDHPs. Employers should ensure that employer HSA contributions and employer-sponsored qualified HDHPs are designed to comply with the 2018 limits.

Rev. Proc. 2017-37 »