As the old saying goes – “the more things change…the more they remain the same”! A little more than a month ago, we shared the news that the IRS had reduced the previously announced, 2018 family Health Savings Account (HSA) contribution limit by $50 (from $6,900 to $6,850).
See – https://smstevensandassociates.com/irs-updates-2018-hsa-family-contribution-amount/
This “middle of the game” change was fraught with challenges and potential fines for unsuspecting HSA taxpayers! Apparently the hue and cry of the affected was great enough to cause the IRS to change course, and revert back to the previously announced HSA contribution limit, for those with family coverage, of $6,900.
The long and short of this guidance is that for 2018 – ANY POTENTIAL TAX PENALTIES FOR CONTRIBUTING MORE THAN $6,850, BUT LESS THAN $6,901 HAVE BEEN REMOVED FOR THOSE WITH QUALIFYING FAMILY COVERAGE.
Importantly, taxpayers that have made a correction to what was previously an excess contribution can: