IRS Announces 2017 Limits on HSA Contributions

For individuals, the cap is raised by $50 to $3,400.
Reported by Lee Barney

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.

Tags
Health care,
Reprints
To place your order, please e-mail Industry Intel.