IRS issues 2016 inflation-adjusted amounts for HSAs

The IRS has issued inflation adjusted amounts under Code Sec. 223 for health savings accounts (HSAs) for 2016. For calendar year 2016, the annual limitation on deductions under Code Sec. 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,350. For calendar year 2016, the limitation on deductions under Code Sec. 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,750.

Also, for calendar year 2016, a “high deductible health plan” is defined under Code Sec. 223(c)(2)(A) 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.

For more information, visit http://www.irs.gov/pub/irs-drop/rp-15-30.pdf.

Visit our News Library to read more news stories.