IRS Releases 2018 HSA and HDHP Limits

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On May 4, 2017, the Internal Revenue Service (IRS) published Revenue Procedure 2017-37, which releases inflation-adjusted contribution limitations for calendar year 2018, applicable to health savings accounts (HSAs) and high-deductible health plans (HDHPs).

These limits are indexed for inflation and released annually, not later than June 1st for the following year, as established under the Tax Relief and Health Care Act of 2006.

2018 Annual HSA Contribution Limits:

Self-only HDHP coverage: $3,450* (up $50 from 2017)

Family HDHP coverage: $6,900* (up $150 from 2017)

*An individual, who has reached the age of 55 by the end of the calendar year, may contribute an additional $1,000 per year as a catch-up contribution.

2018 Annual HDHP Minimum Deductibles:

Self-only coverage: $1,350 (up $50 from 2017)

Family coverage: $2,700 (up $100 from 2017)

2018 HDHP Out-of-Pocket Limits (includes deductibles, co-payments and other amounts, but not premiums):

Self-only coverage: $6,650 (up $100 from 2017)

Family coverage: $13,300 (up $200 from 2017)

For a copy of Revenue Procedure 2017-37 please click on the link provided below.

ADP Compliance Resources

ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.

ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.

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Updated on May 8, 2017

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