The Internal Revenue Service (IRS) has released the inflation-adjusted amounts for Health Savings Accounts (HSAs) effective for calendar year 2013. These amounts are updated annually to reflect cost-of-living adjustments.
HSA background. An individual can contribute to an HSA if they:
Have coverage under an HSA-qualified “high-deductible health plan” (HDHP).
Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
Are not enrolled in Medicare.
Cannot be claimed as a dependent on someone else’s tax return.
Contributions to an HSA can be made by the employee, the employer, or both. However, the total contributions are limited annually. Employer contributions are generally treated as employer- provided coverage for medical expenses under an accident or health plan and are excludable from income.
2013 HSA Contribution Limits - the maximum allowable annual contribution employees may make to their HSAs:
HSA participants with self-only coverage under an HDHP may contribute $3,250 to their HSA (increased from $3,100 for 2012).
HSA participants with family coverage under HDHP may contribute $6,450 (increased from $6,250 for 2012.)
2013 Minimum HDHP Annual Deductibles - the minimum annual deductible required for a plan to qualify as a HDHP:
Self-only coverage is $1,250 (increased from $1,200 for 2012).
Family coverage is $2,500 (increased from $2,400 for 2012).
2013 Out-of-Pocket Spending Maximums for HDHPs - the maximum annual out-of-pocket limits (deductibles, co-payments, and other amounts, but not premiums) allowable under an HDHP:
The maximum annual out-of-pocket amount for HDHP self-only coverage is $6,250 (increased from $6,050 for 2012).
The maximum annual out-of-pocket amount for HDHP family coverage is $12,500 (increased from $12,100 for 2012)
Please contact your Conner Strong & Buckelew account representative toll free at 1-877-861-3220 with any questions. For a complete list of Legislative Updates issued by Conner Strong & Buckelew, visit our online Resource Center.