CCSA Answers: 2018 Changes to Flexible Spending Accounts and Health Savings Accounts

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November 13, 2017 Question: We offer our charter school employees the opportunity to contribute to Flexible Spending Accounts and Health Savings Accounts. What are the changes designated by the Internal Revenue Service (IRS) for 2018?

Answer: The IRS has announced that the following changes to Flexible Spending Accounts and Health Savings Accounts will go into effect on January 1, 2018:

Health Savings Accounts

  • Minimum deductible for health plans is $1,350 for single coverage and $2,700 for family coverage (up from $1,300 and $2,600 respectively in 2017)
  • Maximum annual out-of-pocket limit for health plans is $6,650 for single coverage and $13,300 for family coverage (up from $6,550 and $13,100 respectively in 2017)
  • Maximum contribution to a health savings account is $3,450 for single coverage and $6,900 for family coverage (up from $3,400 and $6,750 respectively in 2017)
  • Maximum "catch-up" contribution (age 55 or over) is $1,000 for single and family coverage (same as 2017)

It is suggested that charter schools also seek advice from their back office support providers, as appropriate. Get more information here: https://www.irs.gov/pub/irs-drop/rp-17-37.pdf