2017 HSA Limits Announced

May 2, 2016


The Internal Revenue Service has announced the 2017 dollar limitations for Health Savings Accounts as well as underlying qualifying High Deductible Health Plans (available here).  There is only a minor increase in the maximum HSA contribution for individuals.  Maximum HSA contributions for a family and out of pocket maximum limits for 2017 are unchanged from 2016.  

High Deductible Health Plan Policy Limits

                    2016 2017
Minimum Deductible  Individual $1,300 $1,300
  Family $2,600 $2,600
Maximum Out of Pocket Limit Individual $6,550 $6,550
  Family $13,100 $13,100

Health Savings Account Limits

                           2016        2017         
Maximum HSA Contribution Individual $3,350 $3,400
  Family $6,750   $6,750  
Over Age 55 Catch-Up Contribution Individual $1,000 $1,000

High Deductible Health Plan Policy Limits

Any amount can be contributed to an HSA up to the maximum annual contribution, regardless of the actual deductible of the underlying HDHP plan.  The HSA contribution rules assume that you will be enrolled on a high deductible health plan for 12 consecutive months.

Embedded Deductibles on an HSA-Qualified HDHP

Many qualified high deductible health plans have an aggregate family deductible so that if an employee covers any dependents on the plan the family deductible applies and the individual deductible is not taken into consideration. However, there are some plans that have an embedded individual deductible such that if one member of the family meets the embedded individual deductible, then the plan coinsurance would start to pay once that individual deductible is met.  In order for such a plan to be a qualified HDHP the embedded individual deductible must be at least the minimum family deductible outlined above.  As an example, these types of plans would need to have an embedded individual deductible of $2,600 to remain HSA qualified in 2017.

Increase of Out-Of-Pocket Max for Non-Grandfathered Health Plans in 2017

Also of note, the Department of Health and Human Services (HHS) recently announced an increase in the limits for out-of-pocket maximums for non-grandfathered health plans (PPO/non-QHDHP) for 2017.  The new maximums are $7,150 for individuals and $14,300 for a family. These represent an increase from the current maximums of $6,850 for individuals and $13,700 for a family.

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