Wagner Law Group is a nationally recognized practice in the areas of
ERISA and employee benefits, estate planning, employment, labor and
human resources and investment management.
in 1996, The Wagner Law Group is dedicated to the highest standards
of integrity, excellence and thought leadership and is considered to
be amongst the nation's premier ERISA and employee benefits law
firms. The firm has seven offices across the country, providing
unparalleled legal advice to its clients, including large, small and
nonprofit corporations as well as individuals and government entities
worldwide. The Wagner Law Group's 32 attorneys, senior benefits
consultant and five paralegals combine many years of experience
in their fields of practice with a variety of backgrounds. Seven
of the attorneys are AV-rated by Martindale-Hubbell
and six are Fellows of the American
College of Employee Benefits Counsel, an invitation-only
organization of nationally recognized employee benefits
lawyers. Seven of the firm's attorneys have been
named to the prestigious Super
Lawyers list for 2017, which highlights outstanding
lawyers based on a rigorous selection process.
Wagner Law Group
Connecticut Avenue, N.W.
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
East Kennedy Boulevard
Tampa, FL 33602
Francisco, CA 94104
25 W. Moody Avenue
St. Louis, MO 63119
IRS Reduces HSA
Contribution Limits for Family HDHP Coverage
has released Revenue Procedure 2018-18 to implement certain changes
under the Tax Cuts and Jobs Act ("Act"). One of the
changes affecting health and welfare plans is a change to the
methodology used by the IRS to calculate cost of living increases,
including certain annual contribution limits.
Background. HSA contribution limits are typically
announced before the tax year to which they apply and generally
remain unchanged throughout the tax year. However, the
reduction in the HSA contribution limit for 2018 comes as a result of
a provision contained in the Act that requires the use of a
"Chained CPI" to calculate cost of living increases.
CPI is a method for calculating inflation that takes into account the
fact that as prices rise some consumers switch to lower priced
products, thereby reducing inflation. The result is that over
time the Chained CPI will produce lower cost of living
2018 HSA Contribution Limit. The use of Chained CPI to
calculate cost of living increases has resulted in the IRS reducing
the previously released annual maximum family contribution limit to a
Health Savings Account ("HSA") from $6,900 to $6,850 in
This reduction applies immediately, which means that any family
contribution to an HSA in 2018 that exceeds $6,850 will be subject to
taxes and penalties. Accordingly, employees who have
contributed more than the maximum amount for 2018 must request a
refund of the excess contribution before the due date for their 2018
income tax filings.
The IRS provides the following confirmation about HSAs in Rev. Proc.
individual contribution limit for HSAs remains unchanged at
HSA-related limits, such as the minimum deductible for an
HSA-qualified high deductible health plan ("HDHP"),
maximum out of pocket limits for HSA-qualified plans, and the
catch-up contribution limit, remain unchanged.
- A HDHP
continues to be defined as a health plan with an annual
deductible that is not less than $1,350 for self-only coverage
or $2,700 for family coverage, and the annual opt-of-pocket
maximums do not exceed $6,650 for self-only coverage and $13,300
for family coverage.
Other Welfare Benefit
Limits. Rev. Proc. 2018-18
further confirms that use of Chained CPI to calculate cost of living
increases requires a reduction in certain limits applicable to
Adoption Assistance Programs. For taxable years beginning in
2018, the maximum amount that can be excluded from an employee's
gross income for qualified adoption expenses is reduced from $13,840
to $13,810. And the adjusted gross income threshold after which
the adoption exclusion begins to phase out is reduced to $207,140.
Although the requirement for using Chained CPI to determine
inflation-related increases applies to Flexible Spending Accounts and
Commuter or Transit Benefits, the 2018 limits for these benefits are
not immediately impacted.