HSA Contribution Limits and Minimum Deductibles Adjusted for Inflation 


  HR News Alert Brought to you by
Total Benefit Solutions Inc
May 6th 2015

 

HSA Contribution Limits and Minimum Deductibles Adjusted for InflationThe IRS has released the 2016 inflation adjusted amounts for health savings accounts (HSAs). To be eligible to contribute to an HSA, an individual must be covered under a high deductible health plan (HDHP) and meet certain other eligibility requirements.

Annual Contribution Limitation  For calendar year 2016, the annual limitation on HSA deductions for an individual with self-only coverage under an HDHP is $3,350. The annual limitation on HSA deductions for an individual with family coverage under an HDHP is $6,750.

High Deductible Health Plan For calendar year 2016, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.

To view the IRS announcement, please see Revenue Procedure 2015-30.

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