The IRS on Monday issued the inflation-adjusted figures for calendar-year 2016 for the annual contribution limits for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans (Rev. Proc. 2015-30).
Under Sec. 223, individuals who participate in a health plan with a
high deductible are permitted a deduction for contributions to HSAs
set up to help pay the individuals’ medical expenses. The contribution
deduction limit is subject to an inflation adjustment each year. For
2016, the annual limit on deductible contributions is $3,350 for
individuals with self-only coverage (unchanged from 2015) and $6,750
for family coverage ($100 higher than for 2015).
To be
eligible to contribute to an HSA, an individual 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)). These limits
are also subject to annual inflation adjustments.
For 2016, the lower limit on the annual deductible under a high-deductible plan is $1,300 for self-only coverage and $2,600 for family coverage, the same as for 2015. The upper limit for out-of-pocket expenses is $6,550 for self-only coverage and $13,100 for family coverage, both slightly higher than for 2015.
— Sally P. Schreiber ( sschreiber@aicpa.org ) is a JofA senior editor.
