IRS Announces New HSA Limits For 2015
June 20, 2014
The Internal Revenue Service recently released higher limits on contributions to health savings accounts (HSAs) and for out-of-pocket spending (deductibles, copayments, etc.) under high-deductible health plans (HDHPs) for 2015. HSA HSAcontribution limits are updated annually to reflect cost-of-living adjustments and certain other IRS rules.
A HSA is a savings account that belongs to the individual who establishes it; funds are contributed pre-tax by either the individual or in some cases by the individual’s employer. It must be paired with a high-deductible health plan. Anyone who enrolls in a HDHP can make HSA contributions for the current tax year through April 15 of the following year.
The maximum HSA contribution for 2015 will be $3,350 for those with individual coverage, up from $3,300 in 2014. The maximum contribution for those with family coverage will be $6,650, up from $6,550.
The following limits will apply to HDHPs for 2015:
Minimum deductible, individuals: $1,300
Minimum deductible, families: $2,600
Maximum out-of-pocket spending, individuals: $6,450
Maximum out-of-pocket spending, families: $12,900
There will continue to be penalties for those under age 65 who use HSA funds for non-qualified medical expenses. In addition, funds spent for non-qualified medical expenses will be subject to income tax.
These new limits are set forth in IRS Revenue Procedure 2014-30 and take effect in January 2015.
Do you have questions about your HSA and high-deductible health plan? Can we help you apply for and set up a HDHP and a related health savings account?