Each spring, the Internal Revenue Service announces inflation adjusted limits applicable to Health Savings Accounts (HSAs) for the following calendar year. The limits applicable for 2016 were recently released in Revenue Procedure 2015-30.
For 2016, the maximum allowable annual HSA contribution for individuals with single High Deductible Health Plan (HDHP) coverage will remain at $3,350 while the maximum contribution for individuals with family HDHP coverage will increase to $6,750 (up from $6,550 respectively in 2015). HSA eligible individuals over the age of 55 by the end of 2016 can contribute an additional $1,000 per year to their accounts.
For qualifying HDHPs in 2016, the minimum required deductible will remain $1,300 for single coverage and $2,600 for family coverage. The out-of-pocket maximum for HDHPs providing single coverage will increase to $6,550 and for family coverage the out-of-pocket maximum will increase to $13,100 (up from $6,450 and $12,900 respectively in 2015).
For any questions about HSA compliance or strategy, feel free to contact Trey Tompkins at Admin America. He can be reached at email@example.com or toll-free at 1-800-366-2961.