IRS sets 2016 Health Savings Contributions

Health Savings Account Contribution limits for 2016 announced by IRS

The maximum contributions that can be made to health savings accounts in 2016 will increase $100 for families, but remain unchanged for individuals. The IRS announced on Monday, May 4, 2015, that the maximum contribution that can be made next year to an HAS linked to a high deductible plan will be $6750 for employees with family coverage, up from $6650 while the maximum contribution for those with single coverage will remain at $3350.

However, maximum out of pocket expenses will increase in 2016 for both categories.

Maximum out of pocket employee expense, including deductible, will rise $100 next year to $6,550 for single coverage, and increase $200 next year to $13,100 for family coverage.

For 2016, a high deductible health plan is defined as one with an annual deductible of at least $1,300 for self-only coverage and $2,600 for family coverage.

Increases in the HSA limits, which are detailed in Revenue Procedure 2015-30, are tied to changes in the cost of living.

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