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The IRS recently announced a return to $6,900 (from $6,850) for the 2018 Health Savings Account (HSA) contribution limit for eligible individuals with family-level high-deductible health plan (HDHP) coverage. This is the same 2018 contribution limit initially announced in May 2017 before the IRS last month reduced the 2018 limit by $50, reflecting the new cost-of-living calculations required by the December 2017 tax law.
While individuals may now rely on the $6,900 contribution limit, some who had already contributed $6,900 to their HSAs may have taken a $50 curative distribution after the IRS reduced the limit in March. These individuals have the option — if their HSA trustee or custodian permits — to treat that $50 distribution as a "mistake of fact due to reasonable cause" and repay it, along with any earnings, to their HSAs by April 15, 2019. For individuals who don’t – or aren’t allowed to – repay the $50 distribution to their HSA, other options may be available, such as treating the distribution as a return of excess contributions or as a reimbursement of qualified medical expenses.
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