Clarification on 2018 Health Savings Accounts and Estate Tax Exclusion

The IRS issued updates to tax reform rules that affect a few figures reported in our Tax Guide (December 2017 AAII Journal) and Tax Guide Update (March 2018 AAII Journal).

Health Savings Accounts

Contributions to a Health Savings Account (HSA) cannot exceed $6,850 for a family high-deductible health card plan in 2018. This is $50 lower than the originally reported maximum contribution of $6,900.

Estate Tax Exclusion

The per spouse estate tax exemption for 2018 is $11.18 million, for a total effective exclusion of $22.36 million. This is slightly lower than the originally reported exclusion of $11.2 million.

These changes are due to the IRS recalculating inflation adjustments and arriving at more precise figures. For IRS news releases related to tax reform, go to https://www.irs.gov/newsroom/tax-reform.

The AAII Tax Guide online has been updated with these adjusted figures. The March AAII Journal Tax Guide Update article has also been updated online. You can keep up-to-date with the 2018 tax reform changes here at the AAII Blog.


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