To encourage greater participation, a majority (62 percent) of large U.S. HSA employer contributions will be treated as being made through a cafeteria plan if the cafeteria plan permits employees to make pretax salary reduction contributions. Nondiscrimination rules for cafeteria plans. HSA contributions made through a cafeteria plan do not have to satisfy the comparability rules, but are subject to the Section 125 Contributions made through a cafeteria plan.When contributing to any employee's HSA outside of a cafeteria plan, an employer must makeĬomparable contributions to the HSAs of all comparable participating employees. Contributions outside of a cafeteria plan.HSAs and Employer Responsibilities, an analysis by United Benefit Advisors, a network of benefits advisory organizations.
The contribution rules are different for each option, explains Myers, a labor and employee benefits attorney with Proskauer in Washington, D.C.Įmployers that contribute to the HSAs of their employees may do so inside or outside of a cafeteria (Section 125) plan. "Employers should consider these limits when planning for the 2018 benefit plan year and should review plan communications to ensure that the appropriate limits are reflected," advised Damian A. Due to a mild uptick in inflation and rounding rules, the 2018 HSA limit will have small increases, he noted.
"The contribution limits for various tax advantaged accounts for the following year are usually announced in the fall, except for HSAs, which come out in the spring," explained Harry Sit, CEBS, who edits The Financial Buff blog.
#May 2018 monthly planner set code#
These rate changes reflect cost-of-living adjustments, if any, and rounding rules under Internal Revenue Code Section 223. *** Unlike other limits, the HSA catch-up contribution amount is not indexed any increase would require statutory change.Ĭontributions for a given year may be made until the individual's federal tax return due date for that year, without extensions, in which case the HSA administrator must indicate that post-yearend contributions are attributed to the prior calendar year. ** Catch-up contributions can be made during the year by HSA-eligible participants who will turn 55 by year-end. Revenue Procedure 2018-27 allowed the $6,900 limit to remain in effect for 2018. * Originally set at $6,900 but a change in the inflation adjustment calculations for 2018 under the Tax Cuts and Jobs Act reduced the maximum deductible HSA contribution for taxpayers with family coverage under an HDHP by $50, to $6,850. HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) HSA catch-up contributions (age 55 or older)** HSA contribution limit (employer + employee) For Health Savings Accounts and High-Deductible Health Plans