Contribution limits for your self-directed HSA
Taxpayers with Self-Directed HSAs May Contribute Higher Amount under In a nutshell (although somewhat complicated):
- The IRS is allowing taxpayers to treat $6,900 as the annual limitation on deductions for an individual with HDHP family coverage
- An individual who receives a distribution from an HSA in excess of the $6,850 limit published in Rev. Proc. 2018-18 may treat that distribution as the result of a “mistake of fact due to reasonable cause” under Q&A-37 of Notice 2004-50.
- The portion of a distribution (including earnings) that an individual repays to the HSA by April 15, 2019, will not be included in the individual’s income under Sec. 223(f)(2) or be subject to the 20% additional tax under Sec. 223(f)(4).
- The repayment will not be subject to the excise tax on excess contributions under Sec. 4973(a)(5).
There are other stipulations about HSA contributions, distributions, and deductions that all taxpayers with health savings accounts should be aware of. We recommend you consult your tax advisor about how these may affect you.
If you’d like to open a self-directed HSA, our professionals at Next Generation can answer all your questions—in easy-to-understand language—and help you get your account open. Read more about self-directed health savings accounts on our website, or contact us at Info@NextGenerationTrust.com or 1.888.857.8058.