Experiential Wealth

2017 Health Savings Account Plan Limits

May 12, 2016 | Everything Else, Limits, Plan Sponsors

On April 29, 2016, the Internal Revenue Service issued Revenue Procedure 2016-281 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 calendar year 2016 and 2017 limits:

Annual HSA Contribution Limit Y2016 Y2017
Individual  with Single Coverage – 223(b)(2)(A) $3,350 $3,400
Individual with Dependent Coverage – 223(b)(2)(B) $6,750 $6,750
Catch-Up Contribution for Individual Age 55 or older $1,000 $1,000
High Deductible Health Plan Y2016 Y2017
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) $6,550 $6,550
Maximum Annual out-of-pocket  for Individual with Dependent  Coverage – 223(c)(2)(A) $13,100 $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 969 (Y2015)2.

IRS Publication 502 (Y2015)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. © 2016 05 12 Chao & Company, Ltd.

  1. https://www.irs.gov/pub/irs-drop/rp-16-28.pdf
  2. https://www.irs.gov/pub/irs-pdf/p969.pdf
  3. https://www.irs.gov/pub/irs-pdf/p502.pdf