The Internal Revenue Service has announced the 2016 dollar limitations for Health Savings Accounts as well as underlying qualifying High Deductible Health Plans (available here). The contribution and out of pocket maximum limits for 2016 will increase as compared to 2015.
High Deductible Health Plan Policy Limits
Maximum Out of Pocket Limit
Health Savings Account Limits
Maximum HSA Contribution
Over age 55 Catch-Up Contribution
Reminder About Contribution Rules
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 2016.
For questions or additional information, please contact Vita Benefits Group at (650) 968-8811.
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