IRS reduces HSA family contribution limit retroactive to Jan. 1

April 13th, 2018

IRS reduces HSA family contribution limit retroactive to Jan. 1

The IRS sets maximum guidelines for how much an individual or family may contribute to an HSA each year.

On Monday, March 5, the Internal Revenue Service (IRS) issued IRS Bulletin (2018-10), changing the Health Savings Account (HSA) 2018 family contribution limit to $6,850.

  • The original 2018 limit had been set for $6,900 and is now reduced by $50.
  • This change is retroactive to Jan. 1, 2018.
  • The individual contribution limit did not change.
  • No other HSA limits (e.g., deductibles, out-of-pocket) or plan designs were impacted by the IRS change.
  •  Employers may want to :
    • Inform their HSA members of this change.
    • If the contribution limit is currently set at $6,900, lower the HSA family annual contribution limit to $6,850.
    • Adjust the amount that can be taken out for employees who have contributed and/or spent the limit. 

Optum Bank sent communications to employers who have Optum HSA plans on March 7. Additional Optum Bank communications on the family contribution change include:

  • The Optum Bank portal – posted now.
  • The Optum CORE HSA statement – went out the week of March 12
  • The HSA newsletter – went out the week of March 26
  • Participant communication was sent the week of March 12, as follows:
  • Individuals who have already contributed more than the allowable family contribution were sent communication notifying them that a check will be returned to the individual for the excess amount. There is no cost to the member for this service.
  • Individuals who have contributions that will likely exceed the family contribution limit have been sent a communication letting them know what to do if they have recurring contributions or payroll contributions.
  • All individuals with Optum HSAs will be sent information on the family contribution limit change in April. 

Individual account holders who already have met their maximum or who have scheduled contributions to meet their maximums will receive communications that indicate what they need to do beginning the week of March19. 

UnitedHealthcare and Optum call centers and Optum online chat are prepared to discuss the change with members, brokers or clients who call. 

The 2018 HSA Guidelines Flier has been updated with the recent change to the family contribution limit. 

If you have questions, please contact your UnitedHealthcare representative.