The Internal Revenue Service (IRS) has announced the 2016 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code.
Annual Contribution Limitation
For calendar year 2016, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350. The annual limitation on HSA deductions for an individual with family coverage under a high deductible health plan is $6,750.
High Deductible Health Plan
For calendar year 2016, 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, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
You may view the IRS Revenue Procedure announcing the 2016 amounts by clicking here.
Be sure to check out our section on Health Savings Accounts for more on HSAs.
Jeffrey R. Ungvary President