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Compliance May 2, 2016
HSA Limits for 2017 Set by IRS
A wide swath of industry research has shown that advisory
clients are concerned about the rising cost of health care in retirement; most
are interested in learning more about tax-advantaged HSAs.
Reported by PLANADVISER staff
The Internal Revenue Service (IRS) issued Revenue Procedure 2016-28, which provides the 2017 inflation adjusted amounts for health savings accounts (HSAs) as determined under Section 223 of the Internal Revenue Code.
For calendar year 2017, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,400. For calendar year 2017, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is unchanged at $6,750.
For calendar year 2017, the IRS defines a “high deductible health plan” 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.
Text of Revenue Procedure 2016-28 is here.