Compliance May 24, 2010

HSA Limits Stay the Same for 2011

The Internal Revenue Service (IRS) has announced that 2011 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under §223 of the Internal Revenue Code are unchanged from the amounts for 2010.
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According to Revenue Procedure 2010-22, the limits are the same because, after the application of the cost-of-living adjustment rules of § 223(g) (including the rounding rule of § 223(g)(2)), the changes in the Consumer Price Index for the relevant period do not result in changes to the amounts for 2011. 

For calendar year 2011, the annual limitation on deductions under §223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,050. For calendar year 2011, the annual limitation on deductions under §223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,150. 

For calendar year 2011, a “high deductible health plan” is defined under §223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 for self-only coverage or $2,400 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,950 for self-only coverage or $11,900 for family coverage. 

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