Taxpayers Affected by Reduction in Maximum Deductible Health Savings Account Will Get Relief from IRS

Taxpayers with family coverage under a High Deductible Health Plan (HDHP) who contribute to a Health Savings Plan (HSA) will see relief from a recent IRS ruling which states for 2018 taxpayers with family coverage under a HDHP can use the $6,900 as the maximum deductible HSA contribution.

While the reduction for maximum deductible HSA contributions for taxpayers with family coverage amounts to just $50 (from a previous $6,850), it’s important for taxpayers who are close to maxing out their plan contribution levels to understand the new ruling or face a potential penalty or disallowance of the HSA plan.