New 2018 guidelines for Health Savings Accounts

 2018 Guidelines:

Minimum deductible amounts

$1,350 self only plans

$2,700 for family plans /$2,700 for embedded individual deductible family plans.

Maximum out-of-pocket limits

$6,650 for self-only plans

$13,300 for family plans. Change due to ACA, no individual in the family can have an out-of-pocket maximum (OOPM) greater than $7,350 (2018).

H.S.A. contribution limits

Consumers can contribute up to the annual maximum amount as determined by the IRS. Maximum contribution amounts for 2018 are $3,450 for self-only and $6,900 for families.

Prorating of contribution limits

Enrolled by Dec. 1 and stay enrolled for the 13-month test period.

OR

Proration applies which means dividing the contribution limit by 12 and contribute that amount each month you are enrolled in an HDHP.

IRA to HSA transfer

Consumers are able to make a one-time, tax-free trustee-to-trustee transfer of IRA funds into an HSA. The individual must remain enrolled in a high-deductible health plan and eligible for an HSA for a 13-month test period after the fund transfer. The funds transferred from the IRA apply to the annual HSA maximum contribution limit. The contribution must be made directly by the IRA trustee.

FSA 2 1/2 month grace period

Only Limited Purpose Flexible Spending Account may be offered alongside the HSA without impacting a member’s eligibility for HSA contributions. Consumers in a full purpose FSA can contribute to an HSA if their FSA balance is zero at the end of the preceding year.

Comparable contributions

Employers may under certain conditions be eligible to make higher contributions for “non-highly compensated employees” without a cafeteria plan. Employer contributions to an HSA based on completion of wellness activities would still require funding through a cafeteria plan.