2014 Health Savings Accounts and Flexible Spending Limits Announced
Savings Accounts (HSA) are pre-tax accounts available to individuals who are
covered under a high-deductible health plan. Eligible individuals can
accumulate money, tax-free, in HSAs to pay for qualified medical expenses in
the face of rising health insurance costs.
The IRS announced higher limits for HSA
contributions for 2014. To
participate in an HSA, the policyholder must, among other requirements, be
enrolled in an HSA-qualified high-deductible health plan with a minimum annual
year 2014, a high deductible health plan is defined as a health plan with an
annual deductible that is not less than $1,250 for self-only coverage or $2,500
for family coverage. This is unchanged from 2013. However, the maximum
annual out-of-pocket expenses (deductibles, co-payments and other amounts — but
not premiums) have increased.
For 2014, the
maximum out-of pocket amounts cannot exceed $6,350 for self-only coverage or
$12,700 for family coverage — a change from the 2013 out-of-pocket maximums of
$6,250 (self-only) and $12,500 (family).
The annual maximum HSA contribution for 2014 is:
- $3,300 for individuals with self-only coverage (an increase of $50 from 2013)
- $6,550 for family coverage (an increase of $100 from 2013)
For more information, visit the IRS website.