IRS Announces 2017 Limits on HSA Contributions
The Internal Revenue Service (IRS) has announced the 2017 limits for health savings account (HSA) contributions and the minimum deductible amounts and maximum out-of-pocket expenses for high-deductible health plans (HDHPs). By law, these limits are indexed annually to adjust for inflation.
Individuals will be able to contribute $3,400 to their HSA
in 2017, a $50 increase, while families’ contributions will remain the same as
in 2016: $6,750.
To qualify as a HDHP in 2017, a plan must have a
minimum annual deductible of $1,300 for self-only coverage (the same as for
2016), or $2,600 for family coverage (also the same as for 2016). The maximum
out-of-pocket expenses permitted for a HDHP is $6,550 for self-only coverage
and $13,100 for family coverage.
Employers are advised to begin updating payroll
and plan administration systems to reflect the 2017 cost-of-living adjustments.
In addition, employers should incorporate the 2017 HSA limits into all relevant
participant communications, like open enrollment and communication materials,
plan documents and summary plan descriptions.