IRS Announces 2015 Health Savings Account Limits
Health Savings Accounts (HSAs) are pre-tax accounts available to individuals 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. 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 deductible.
The IRS announced higher annual limits for HSA contributions for 2015. These limits are indexed for inflation and released annually by June 1 for the following year. The annual maximum HSA contribution for 2015 is:
- $3,350 for individuals with self-only coverage (an increase of $50 from 2014); and
- $6,650 for family coverage (an increase of $100 from 2014).
For calendar year 2015, 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. This is an increase from 2014 ($1,250 for self only; $2,500 for family).
The maximum annual out-of-pocket expenses (deductibles, co-payments and other amounts — but not premiums) have also increased.
For 2015, the maximum out-of pocket amounts can’t exceed $6,450 for self-only coverage or $12,900 for family coverage — a change from the 2014 out-of-pocket maximums of $6,350 (self only) and $12,700 (family).
For more information on health savings account limits, visit the IRS website.