The IRS said it is raising the maximum allowable contribution to a health savings account by $100 in 2016—but only for families.
The IRS quietly announced in May that the maximum contribution that can be made next year to an HSA linked to a high-deductible plan will be $6,750 for employees with family coverage, up from $6,650 in 2015. The maximum contribution for those with single coverage, however, will remain unchanged at $3,350.
Last year, the maximum HSA contribution for individuals jumped $50.
HSA contribution limits are updated annually to reflect cost-of-living adjustments.
For calendar year 2016, a HDHP will be defined as a health plan with an annual deductible that is “not less than $1,300 for self-only coverage or $2,600 for family coverage.” Also, annual out-of-pocket expenses—such as deductibles, copayments and other amounts that do not include premiums—will not exceed $6,550 for self-only coverage or $13,100 for family coverage, the IRS said.
The increases are detailed in Revenue Procedure 2015-30, and take effect in January.
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