The IRS has released the 2014 limits for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). While the deductible amounts remain unchanged from 2013, the out-of-pocket and contribution amounts have increased. Please review the impact of the limits on current and proposed HSA/HDHP arrangements, and update plan documents and enrollment materials in anticipation of the new limits.
In Revenue Procedure 2013-25, the IRS provides the inflation-adjusted HSA ontribution and HDHP minimum deductible and out-of-pocket limits for calendar year 2014. The imits are determined under the cost-of-living adjustment and rounding rules of Code section 223.
2014 HSA/HDHP Limits Announced 2013-2014 Change
HDHP minimum deductible amount: 2013 2014 Change
Individual $1,250 $1,250 No Change
Family $2,500 $2,500
HDHP maximum out-of-pocket amount
Individual $6,250 $6,350 +$100
Family $12,500 $12,700 +$200
HSA statutory contribution amount
iNDIVIDUAL $3,250 $3,300 +$50
FAMILY $6,450 $6,550 +$100
Catch-up contribution (age 55 or older) $1,000 $1,000 No Change
HSA Savings can also be used for:
Health insurance premiums when you’re between jobs
Qualified long-term care premiums.
Medicare premiums and out-of-pocket expenses
Living expenses after age 65 (pay ordinary income taxes)
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