The Washington Report
March 7, 2018
IRS Releases Notice of Transition Relief Regarding Application of Section 223 to Certain Health Plans Providing Benefits for Male Sterilization or Male Contraceptives
On March 5, 2018, the Internal Revenue Service (IRS) released Notice 2018-12, which clarifies that a health plan providing benefits for male sterilization or male contraceptives without a deductible, or with a deductible below the minimum deductible for a high deductible health plan (HDHP) under Section 223(c)(2)(A) of the Internal Revenue Code (Code), is not an HDHP under current guidance interpreting the requirements of Section 223(c)(2) of the Code. The Notice further provides transition relief for periods before 2020 during which coverage has been provided for male sterilization or male contraceptives without a deductible, or with a deductible below the minimum deductible for an HDHP.
IRS Notice 2018-12 is available here.
IRS Issues New 2018 Inflation Adjustments and Tax Rate Tables; Changes Include Decrease to HSA Contribution Limit for Family Coverage
On March 5, 2018, the IRS issued new inflation adjustments and tax tables for 2018 (Revenue Procedure 2018-18), due to the enactment of the Tax Cuts and Job Act (P.L. 115-97). Included in the revisions is a decrease to the 2018 annual health savings account (HSA) contribution limit for family coverage—from $6,900 to $6,850, superseding the figure in Revenue Procedure 2017-37 (released May 2017). For specific information about the various updates, please refer to Revenue Procedure 2018-18. In addition, please see IRS Lowers HSA Family Contribution Limit and Adoption Expense Exclusion, Reaffirms IRS Defines Preventive Care for HDHPs in the Publications section below.
IRS Revenue Procedure 2018-18 is available here.
IRS Lowers HSA Family Contribution Limit and Adoption Expense Exclusion, Reaffirms IRS Defines Preventive Care for HDHPs
The Internal Revenue Service (IRS) has begun issuing guidance implementing the new tax law—and that means lower contribution limits for certain employees in health savings accounts (HSAs) and high deductible health plans (HDHPs), and a reduced income exclusion for employees in an employer-sponsored adoption plan, both effective retroactively to January 1, 2018.
The Aon bulletin is available here.
Updated: IRS Issues HSA Contribution Limits for 2018
On March 5, 2018, the IRS issued new 2018 inflation adjustment and tax rate tables (Revenue Procedure 2018-18). Included in the changes is a decrease to the 2018 HSA contribution limit for family coverage. This Aon bulletin updates the original May 2017 publication.
The updated Aon bulletin is available here.
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