IRS Increases Contribution Limits for High-Deductible Plan Health Savings Accounts
The IRS has increased the contribution limit on health savings accounts (HSAs) that accompany high-deductible health plans. For 2014, the limit for individuals with self-only coverage is now $3,300, up from $3,250 for 2013; for family coverage, the 2014 limit has increased to $6,550 from the 2013 limit of $6,450. The out-of-pocket expense limits have also gone up $6,350 for self-only coverage and $12,700 for family coverage (from the 2013 limits of $6,250 and $12,500, respectively). For 2014, a high-deductible health plan is defined as a plan for which the annual deductible is at least $1,250 for self-only coverage and $2,500 for family coverage.