The IRS has provided the annual inflation-adjusted contribution, deductible, and out-of-pocket expense limits for 2017 for health savings accounts (HSAs).
Eligible individuals may, subject to statutory limits, make deductible contributions to an HSA. In general, a person is an eligible individual if s/he is covered under a high-deductible health plan (HDHP) and is not covered under any other health plan that is not a HDHP, 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).
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.
Annual Inflation-Adjusted Contribution (Each of these amounts is increased by $1,000 if the eligible individual is age 55 or older)
2017 - $3,400
2016 - $3,350
Annual Out-of-Pocket Expenses (deductibles, co-payments, and other amounts, but not premiums)
2017 - do not exceed $13,100 for family coverage (no change from 2016)
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.