May 5, 2015 – The IRS released the 2016 cost-of-living adjustment amounts for health savings accounts (HSAs) in Revenue Procedure 2015-30. Adjustments have been made to the HSA contribution limit for individuals with family high deductible health plan (HDHP) coverage and to some of the deductible and out-of-pocket limitations for HSA-compatible HDHPs.
The HSA contribution limit for an individual with self-only HDHP coverage remains at $3,350 for 2016. The 2016 contribution limit for an individual with family coverage is increased to $6,750. These limits do not include the additional annual $1,000 catch-up contribution amount for individuals age 55 and older, which is not subject to cost-of-living adjustments.
HSA-compatible HDHPs are defined by certain minimum deductible amounts and maximum out-of-pocket expense amounts. The HDHP limits for 2016 are also found in Revenue Procedure 2015-30. For HDHP self-only coverage, the minimum deductible amount is unchanged for 2016 and cannot be less than $1,300. The 2016 maximum out-of-pocket expense amount for self-only coverage is increased to $6,550. For 2016 family coverage, the minimum deductible amount is unchanged at $2,600 and the out-of-expense amount increases to $13,100.
The following table highlights the 2015 and 2016 limitations.
|HSA Annual Contribution Limit*||HDHP Minimum Annual Deductible||HDHP Maximum Out-of-Pocket Expense|
*Plus $1,000 per year if age 55 or older
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