HSA inflation adjustments issued for 2013

BY SALLY P. SCHREIBER

On Friday, the IRS issued the inflation-adjusted figures for the annual contribution limitation for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013 (Rev. Proc. 2012-26).

Under Sec. 223, individuals who participate in a health plan with a high deductible amount are permitted a deduction for contributions to HSAs set up to help pay the individuals’ medical expenses. The limit on the contribution deduction is subject to an inflation adjustment each year: For 2013, the annual limitation on deductible contributions is $3,250 for individuals with self-only coverage and $6,450 for family coverage.

To be eligible to contribute to an HSA, individuals must participate in a “high deductible health plan,” which is defined as a health plan with an annual deductible that is not less than a certain limit each year and for which the annual out-of-pocket expenses, including deductibles, co-payments, and other amounts, but excluding premiums, does not exceed a certain limit each year (Sec. 223(c)). As with the contribution deduction limitation, these limits are subject to annual inflation adjustments. For 2013, the lower limit on the annual deductible under a high-deductible plan is $1,250 for self-only coverage and $2,500 for family coverage. The upper limit for these out-of-pocket expenses is $6,250 for self-only coverage and $12,500 for family coverage.       

Sally P. Schreiber ( sschreiber@aicpa.org ) is a JofA senior editor.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED

Building process maps: Template and instructions

Documenting your financial close process and finding opportunities for automation are more important than ever. Our customizable slide deck has instructions, a risk assessment questionnaire, and bonus checklists that will help you map out your process.