Due to the new tax reform law, on March 5, 2018, the IRS released Revenue Procedure 2018-18 announcing that it has
recalculated some of its previously-released 2018 limits for health saving accounts (“HSAs”), Archer medical savings
accounts (“MSAs”), adoption assistance programs, and the small employer health insurance credit.

HSAs
The 2018 HSA maximum contribution for the family tier is reduced from $6,900 to $6,850. The other HSA limits remain the
same.

Note that:
1. Although the limit is announced on an annual basis, it is actually determined monthly so individuals who are not
HSA-eligible for all of 2018 are generally limited to the number of months they are HSA-eligible and enrolled in family
coverage multiplied by $570.83 per month
(rather than $575 per month).

2. Individuals who already contributed the full 2018 limit (i.e., who front-loaded) or otherwise end up going over the limit
need to contact the HSA trustee/custodian for a taxable distribution ($50 if HSA-eligible all year) by the due date of
his or her 2018 tax return to avoid penalty.

Please read the attached for additional information.

IRS Decreases Some 2018 Limits, Including Maximum Family HSA Contribution – 031218R