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Compliance August 25, 2016
IRS Announces 2017 Limits on HSA Contributions
For individuals, the cap is raised by $50 to $3,400.
Reported by Lee Barney
The Internal Revenue Service (IRS) has announced the 2017 limits for health savings account (HSA) contributions and the minimum deductible amounts and maximum out-of-pocket expenses for high-deductible health plans (HDHPs). By law, these limits are indexed annually to adjust for inflation.
Individuals will be able to contribute $3,400 to their HSA
in 2017, a $50 increase, while families’ contributions will remain the same as
in 2016: $6,750.
To qualify as a HDHP in 2017, a plan must have a
minimum annual deductible of $1,300 for self-only coverage (the same as for
2016), or $2,600 for family coverage (also the same as for 2016). The maximum
out-of-pocket expenses permitted for a HDHP is $6,550 for self-only coverage
and $13,100 for family coverage.
Employers are advised to begin updating payroll
and plan administration systems to reflect the 2017 cost-of-living adjustments.
In addition, employers should incorporate the 2017 HSA limits into all relevant
participant communications, like open enrollment and communication materials,
plan documents and summary plan descriptions.