April 27, 2012

Important change concerning HSA contribution limitation


The HSA contribution limit for an individual is $3,100 and the limit for families is $6,250 for 2011 and 2012.
The IRS has sent out a notice upping the limit for HSA contributors in 2013:
Rev. Proc. 2012-26




SECTION 1. PURPOSE

This revenue procedure provides the 2013 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code.

SECTION 2. 2013 INFLATION ADJUSTED ITEMS

Annual contribution limitation. For calendar year 2013, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,250. For calendar year 2013, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,450.

High deductible health plan. For calendar year 2013, a "high deductible health

plan" is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,250 for self-only coverage or $12,500 for family coverage.

SECTION 3. EFFECTIVE DATE

This revenue procedure is effective for calendar year 2013.

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