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IRS Releases 2017 Health Savings Account Limits (article)

In Revenue Procedure 2016-28, the IRS released the 2017 cost of living adjustments relating to health savings accounts (HSA).  For 2017, the high deductible health plan (HDHP) annual deductible limits and out-of-pocket limits remain unchanged.  Only the individual contribution limit increased slightly.  As a reminder, if a family HDHP plan has an embedded deductible, the statutory minimum deductible for any individual cannot be less than $2,600 (the family statutory minimum deductible).  The $1,000 catch up contribution available to accountholders aged 55 and over is not tied to a cost of living adjustment and thus, remains at $1,000.

 

 

Individual/Self Only

Family

2017

2016

2017

2016

HDHP Annual

Deductible

 

$1,300

 

$1,300

 

$2,600

 

$2,600

HDHP Annual

Out-of-Pocket Limit*

 

$6,550

 

$6,550

 

$13,100

 

$13,100

Contribution Limit

$3,400

$3,350

$6,750

$6,750

 

*Note:  The out-of-pocket (OOP) limits applicable to high deductible health plans used in conjunction with HSAs differ slightly from the Affordable Care Act’s imposed OOP limits, which for 2016 are $6,850 for self-only coverage, $13,700 for other than self-only coverage.  In 2017, the OOP limit increases to $7,150 for self-only, $14,300 for other than self-only coverage.  As a reminder, for a family plan, no individual can be subject to an OOP greater than the individual OOP limit.

 

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.   
 

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