Our friends at SESCO Management Consultants advise us that the IRS has lowered the 2018 Family contribution limit on Health Savings Accounts (HSAs) to $6,850 from the previously announced limit of $6,900. The new lower contribution limit was recalculated to factor in the impact of the Tax Cuts and Jobs Act signed into law back in December.  The agency also clarified that that the annual tax deductible contribution limit for 2018 was not lowered for self-only coverage and will remain $3,450. On other matters, we learned that the IRS has begun mailing letters to employers advising them of potential liability for a pay or play penalty for calendar year 2015. Before any penalties are assessed on employers however, employers will have an opportunity to respond to the IRS.