- Proposed Legislation To Increase HSA Contribution Limits - 11/7/17
- Senators Orrin Hatch (R-Utah) and Kevin Brady (R-Texas) introduced legislation to extend Affordable Care Act (ACA, also known as Obamacare) insurance subsidies through 2019. The legislation also proposes increasing the maximum health savings account (HSA) contribution limits to the plan deductible or out of pocket limit.
At this time, contributions limits have not changed for HSAs; the current 2018 HSA contributions limits remain at $3,450 for single and $6,900 for family.
Timing of when Congress will vote on the legislation is to be determined. SelectAccount is continuing to monitor events.
- IRS Reinstates $6900 HSA Contribution Limit - 4/27/2018
- Overview: The IRS released guidance allowing 2018 family HSA contribution limits to again be $6,900.
On March 2, 2018, the IRS released guidance which lowered due to inflation the 2018 HSA contribution limit for family coverage by $50 to $6,850. This surprised a lot of people and could have led to tax penalties for individuals who had already contributed more than the new limit or individuals who didn’t realize the limit had changed and fail to change their contributions to the new lower limit by the end of 2018. However, this new guidance removes any potential tax penalties for 2018.
- Taxpayers can continue to treat the family HSA contribution limit as $6,900.
- If a taxpayer has received a corrective distribution they may, but are not required, to repay the contribution to the HSA up to the $6,900 limit.
- Maryland Passes Male Sterilization Exemption for HSAs - 04/18/18
- On Tuesday, April 10 state legislation was officially changed (enacted) in Maryland exempting HDHP health plans from the male sterilization coverage. The original law mandated that as of 1/1/18 all plans in MD cover male contraceptives at 100%. This made all plans incompatible with HSAs because only preventative services can be covered at 100%. This change to the law provid s an exception from this rule for HDHP plans so that those members would still be able to contribute to their HSAs.
The final legislation can be viewed here.
- U.S. Congress passes new tax plan - 12/21/17
- On Dec. 20, Congress approved the final version of the tax bill. Before becoming law, the bill must be signed by President Donald Trump. If signed into law, this legislation impacts fringe commuter benefits. Meaning, as of January 1, 2018, employers will no longer receive a tax deduction for providing parking or transit pass contribution assistance to employees. Employees who pay for their own transportation cost are still permitted to use pre-tax income on those expenses.
Further will continue to monitor events surrounding the tax bill
- President Trump signs Affordable Care Act (ACA) Executive Order - 10/18/17
- On Oct. 12, President Donald Trump signed an executive order that directs federal regulators to issue new rules regarding health reimbursement arrangements (HRAs), association group health plans, and short-term health policies. President Trump has asked agencies to issue new regulations broadening the use and availability of HRAs, specifically allowing for non-group HRAs. The agencies have 120 days to issue proposed regulations.
Currently, the existing rules surrounding HRAs have not changed. Further is continuing to monitor events.