The IRS announced that the maximum contributions to health savings accountswill increase to $3,350 for individual coverage and $6,650 for family coverage in 2015.
The IRS recently announced that the maximum contributions for health savings accounts (HSA) will increase only slightly in 2015. The IRS evaluates and determines HSA limits annually to reflect cost-of-living adjustments. The maximum 2015 contributions have been set for $3,350 for individual coverage, an increase of $50 from 2014, and $6,650 for family coverage, a $100 increase from 2014 limits. For those individuals 55 years of age and older not enrolled in Medicare, a $1,000 HSA catch-up contribution will continue to be allowed in 2015. HSAs are tax-advantaged medical savings accounts available to individuals enrolled in a qualified high deductible health plan (HDHP).
HDHP maximum out-of-pocket employee expenses will also see an increase in 2015. Maximum expenses for single HDHP coverage will increase $100 to $6,450 in 2015, and $200 for family coverage, up to $12,900. Individuals enrolled in an HDHP with an HSA will therefore be allowed to set aside slightly more pre-tax dollars to help offset the additional increase in exposure to out-of-pocket costs under their corresponding health plan. HDHP minimum deductibles will increase in 2015 as well by $50 for an individual to $1,300, and $100 for a family to $2,600.
Employers who offer their employees an HDHP with an HSA in 2015 who plan to increase their health plan’s out-of-pocket expenses should communicate the increased maximum to their employees and encourage them to consider increasing their own employee contributions into their HSA to counterbalance the potential out-of-pocket health plan costs.
To learn about HSA administration solutions from POMCO Group, call 800.934.2459.