Experiential Wealth

2016 Health Savings Account Plan Limits

May 4, 2016 | Everything Else, Limits, Plan Sponsors

On May 04, 2015, the Internal Revenue Service issued Revenue Procedure 2015-301 announced the 2016 inflation-adjusted amounts for HealthSavings Accounts (HSAs), as determined under the Internal Revenue Code § 223.

The following is a comparison of the 2015 and 2016 limits:

Annual HSA Contribution Limit Y2015 Y2016
Individual  with Single Coverage – 223(b)(2)(A) $3,350 $3,350
Individual with Dependent Coverage – 223(b)(2)(B) $6,650 $6,750
Catch-Up Contribution for Individual Age 55 or older $1,000 $1,000
High Deductible Health Plan Y2015 Y2016
Minimum Annual Deductible for Individual with Single Coverage – 223(c)(2)(A) $1,300 $1,300
Minimum Annual Deductible for Individual with Dependent  Coverage – 223(c)(2)(A) $2,600 $2,600
Maximum Annual out-of-pocket  for Individual with Single Coverage – 223(c)(2)(A) $6,450 $6,550
Maximum Annual out-of-pocket  for Individual with Dependent  Coverage – 223(c)(2)(A) $12,900 $13,100

A health savings account is a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA.

No permission or authorization from the IRS is necessary to establish an HSA. When you set up an HSA, you will need to work with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider. Information pertaining to HSAs can be found in IRS Publication 9692.

IRS Publication 502 (Y2014)3 provides a comprehensive list of qualified medical and dental expenses that can be paid from or reimbursed by an HSA.

This document is provided as an informational summary regarding the subject matter by Chao & Company, Ltd., and it is intended for general information purposes only and should not be considered or perceived as benefit, legal, tax or regulatory advice. The contents are neither an exhaustive discussion nor do they purport to cover all aspects or developments related to the subject matter.  Chao & Company, Ltd. has no obligation to update this document further.  Readers should consult with their legal counsel, tax advisor and benefit consultants to determine how this subject matter may relate to or impact their specifi­c situations.  Please contact Philip Chao for comments and questions at pchao@chaoco.com. © 2015 05 04 Chao & Company, Ltd.

  1. http://www.irs.gov/pub/irs-drop/rp-15-30.pdf
  2. http://www.irs.gov/pub/irs-pdf/p969.pdf
  3. http://www.irs.gov/pub/irs-pdf/p502.pdf