IRS Sets 2016 Health Savings Account (HSA) Contribution Limits

On Monday, May 4th the IRS released the 2016 inflation-adjusted amounts for health savings accounts (HSAs). For calendar year 2016, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350 and for an individual with family coverage it is $6,750. The “high deductible health plan” annual deductible cannot be less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses cannot exceed $6,550 for self-only coverage or $13,100 for family coverage.