IRS Releases HSA Adjustments for Tax Year 2016
The Internal Revenue Service released Revenue Procedure 2015-30 on May 4th, 2015 providing the 2016 inflation adjustments for Health Savings Accounts (HSAs). The annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350. The deduction for an individual with family coverage under a high deductible health plan is $6,750. An individual age 55 or older is allowed an additional $1,000 toward their annual limitation under both self-only and family coverage.
For 2016, a high deductible health plan is defined as a plan with an annual deductible of not less than $1,300 for self-only coverage or not less than $2,600 for family coverage, and where the annual out-of-pocket expenses do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
For tax year 2015, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350 while the deduction for an individual with family coverage under a high deductible health plan is $6,650.