The IRS recently announced the amounts that individuals and families can contribute to Health Savings Accounts in 2014. This article tells you the individual and family contribution amounts for both 2014 and 2013.
HSAs for 2014
With Health Savings Accounts (HSAs), individuals and businesses buy less expensive health insurance policies with high deductibles. Contributions to the accounts are made on a pre-tax basis. The money can accumulate year after year tax free, and be withdrawn tax free to pay for a variety of medical expenses such as doctor visits, prescriptions, chiropractic care and premiums for long-term-care insurance.
Participating employers can also contribute to accounts, on behalf of their employees.
Here are the 2014 limits for individual and family coverage, which were announced by the IRS in Revenue Procedure 2013-25. They are determined after the IRS applies cost-of-living adjustment rules, and the changes in the Consumer Price Index for the relevant period.
Health Savings Accounts
|Self-only coverage annual minimum deductible||$ 1,250||$ 1,250|
|Self-only coverage maximum out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums)||$ 6,350||$ 6,250|
|Self-only coverage maximum HSA contribution||$ 3,300||$ 3,250|
|Family coverage annual minimum deductible (Family coverage can include a spouse and any dependents)||$ 2,500||$ 2,500|
|Family coverage maximum out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums)||$12,700||$12,500|
|Family coverage maximum HSA contribution||$ 6,550||$ 6,450|
For more information about HSAs, contact your employee benefits and an EHTC adviser.