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IRS Announces Raises to HSA/HDHP Dollar Limits for 2018

May 17, 2017 | Leave a Comment

IRS Announces Raises to HSA/HDHP Dollar Limits for 2018

Dollar limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) will be increased for plan years beginning after Jan. 1, 2018, to account for inflation, as announced by the Internal Revenue Service this month.

The following chart outlines the changes in contribution limits to occur in 2018:

Changes to 2018 HSA and HDHP Limits

HSA Contribution Changes

The HSA contribution limit will increase $50 for self-only plans and $150 for family plans, to a total limit of $3,450 and $6,900 respectively. HSA catch-up contributions for people age 55 and older are not subject to increases to account for inflation and will remain the same.

HDHP Eligibility Changes

To qualify as an HDHP in 2018, a plan will require a minimum deductible of $1,350 for self-only plans, up $50 from the 2017 minimum. The minimum deductible for family HDHP plans will increase $100 from 2017 to $2,700 in 2018.

Out-of-pocket maximums have also increased for the 2018 plan year. Maximum expenses for HDHP plans will be $6,650 for self-only and $13,300 for family, up $100 and $200 from 2017 respectively.

Next Steps

Employers sponsoring HDHPs may need to make changes to plan designs for 2018 and update any enrollment materials to reflect these new HSA limits.

Please contact your Cornerstone Consultant with any questions about the IRS’ announcement to raise HSA/HDHP dollar limits for 2018.

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