The IRS announced the inflation-adjusted increases for thresholds applicable to HSAs and High-Deductible Health Plans (HDHPs) for 2013.
- The maximum annual HSA contribution for self-only HDHP coverage will increase from $3,100 to $3,250. The maximum annual HSA contribution for family HDHP coverage will increase from $6,250 to $6,450. Age 55 catch-up contributions will continue to be at $1,000, per §223 of the Internal Revenue Code.
- The minimum HDHP deductible will increase from $1,200 to $1,250 for self-only coverage and from $2,400 to $2,500 for family coverage.
- The annual maximum for HDHP out-of-pocket expenses (deductibles, co-payments and other amounts) will be $6,250 for self-only coverage and $12,500 for family coverage, up from $6,050 and $12,100, respectively, in 2012.
These limits are effective for calendar year 2013. For HDHPs with non-calendar plan years, the minimum deductible and out-of-pocket limits are those that are in effect on the first day of the plan year.
A recent HSA/HRA study by the Employee Benefit Research Institute showed that in 2011 more than 8 million Americans have HSAs and/or HRAs, with more than $12 billion in assets. This indicates an increase of more than 500 percent since 2006. HSAs, in particular, have a triple tax benefit (contributions, earnings and medical-related distributions are tax free) and are portable. They can be used for current medical expenses or expenses in retirement years.