The IRS has announced the annual inflation adjustments for limits on deductible contributions to health savings accounts (HSAs) for the 2015 calendar year. The IRS also included the inflation adjusted limits on annual deductibles for purposes of defining a high-deductible health plan (HDHP). The HSA and HDHP limits were adjusted upward to reflect changes in the cost of living.
The code for Health Savings Accounts provides for establishment of an HSA for certain taxpayers enrolled in an HDHP and who meet other requirements. An HSA helps taxpayers to pay for qualified medical expenses not covered under the HDHP by allowing employers and employees to make excludable or deductible contributions to an HSA. The HSA account balance and earnings may be withdrawn tax-free to pay for qualified medical expenses.
New Contribution Limits
The 2015 annual limitation on deductible contributions for an individual with self-only coverage under an HDHP is $3,350, up from $3,300 for 2014. For an individual with family coverage for 2015, the annual limitation is $6,650, up from $6,550 for 2014.
The IRS also released its inflation adjusted limitations for purposes of defining what qualifies as an HDHP. For 2015, a HDHP is 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 (up from $1,250 and $2,500, respectively for 2014). In addition, to qualify as an HDHP, the health plan’s annual out-of-pocket expense limits for deductibles and co-pays (but not premiums) must not exceed $6,450 for self-only coverage or $12,900 for family coverage for 2015 (up from $6,350 and $12,700, respectively, for 2014).