IRS Adjusts HSA-Related Limits for 2016

via Lockton Benefit Group Compliance Services

The IRS has released the inflation-adjusted contribution and related amounts for health savings accounts (HSAs) and HSA-compatible high-deductible health plans, or HDHPs, for 2016. These limits are tied to changes in the Consumer Price Index by application of the cost-of-living adjustment rules. The limits for 2016 are set forth below:

2016 HSA-Related Limits

Annual HSA Contribution Maximum: $3,350 for single coverage, $6,750 for family coverage (maximum for single coverage unchanged from calendar year 2015; maximum for family coverage increased from $6,650)

Annual Catch-Up Contribution Maximum: $1,000 for HSA-eligible individuals age 55 or older (no change from calendar year 2015)

HDHP Minimum Deductible: $1,300 for single coverage, $2,600 for family coverage (no change from calendar year 2015)

HDHP Out-of-Pocket Maximum: $6,550 for single coverage, $13,100 for family coverage (increase from $6,450 and $12,900, respectively; for plans with non-calendar year plan years, the increase in out-of-pocket maximums applies for the plan year beginning in 2016)

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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