Benefits Insights

Under recent IRS guidance, there will be minimal changes to the annual contribution limits to Health Savings Accounts (HSAs) that will be tax-deductible for 2017. Actually, there will only be one change from 2016. Under Rev. Proc. 2016-28, an individual may contribute $3,400 to an HSA under a high deductible health plan for 2017. That’s a bump from $3,350 for 2016. The annual limit for an individual with family coverage remains unchanged at $6,750 for 2017. The definition of what constitutes a high deductible health plan (HDHP) also remains unchanged from 2016. For 2017, a HDHP will continue to mean a health plan with a minimum annual deductible of $1,300 for self-only coverage or $2,600 for a family and annual out-of-pocket expenses that don’t exceed $6,550 for self-only coverage or $13,100 for a family.