Aside from a modest increase of $50 in the amount that individuals may contribute annually to their health savings accounts (HSAs) for self-only coverage, HSA-related limits for 2017 are holding firm.
In Revenue Procedure 2016-28, issued April 29, the IRS provided the inflation-adjusted HSA contribution limits effective for calendar year 2017, along with minimum deductible and maximum out-of-pocket expenses for the high-deductible health plans (HDHPs) that HSAs are coupled with.
These rate changes reflect cost-of-living adjustments, if any, and rounding rules under Internal Revenue Code Section 223.
“The contribution limits for various tax advantaged accounts for the following year are usually announced in the fall, except for HSAs, which come out in the spring,” explained Harry Sit, CEBS, who edits The Financial Buff blog. “Due to mild inflation and rounding rules, the 2017 HSA contribution limit for family coverage will stay unchanged.”
An HSA is always in an individual’s name. There are no joint HSAs, even when the HSA is linked to a family coverage HDHP and subject to the higher family coverage contribution limit.
Some employer plans include an “employee plus one” tier in addition to self-only and family coverage. An “employee plus one”—such as an eligible employee and her dependent child—would fall under the HSA family coverage limits.
Read the full article here.