The IRS has provided the annual inflation-adjusted contribution, deductible, and out-of-pocket expense limits for 2016 for health savings accounts (HSAs). Eligible individuals may, subject to statutory limits, make deductible contributions to an HSA.
Employers, as well as other persons such as family members, may also contribute on behalf of an eligible individual. Employer contributions generally are treated as employer-provided coverage for medical expenses under an accident or health plan and are excludable from income.
In general, a person is an “eligible individual” if he is covered under a high deductible health plan (HDHP) and is not covered under any other health plan that is not a high deductible plan — unless the other coverage is permitted insurance (e.g., for worker's compensation, a specified disease or illness, or providing a fixed payment for hospitalization).
For calendar year 2016, the limitation on deductions is
$3,350 for an individual with self only coverage (no change from 2015)
$6,750 for an individual with family coverage under a HDHP (up from $6,650 for 2015)
Each of these amounts is increased by $1,000 if the eligible individual is age 55 or older
For calendar year 2016, a HDHP is a health plan with an annual deductible that is not less than $1,300 (no change from 2015)
$2,600 for self-only coverage or (no change from 2015)
Do not exceed $6,550 for family coverage, and with respect to which the annual out-of-pocket expenses, such as deductibles, co-payments, and other amounts, but not premiums (up from $6,450 for 2015)
For self-only coverage or $13,100 for family coverage (up from $12,900 for 2015)
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