The IRS has released the 2016 inflation adjusted amounts for health savings accounts (HSAs). To be eligible to contribute to an HSA, an individual must be covered under a high deductible health plan (HDHP) and meet certain other eligibility requirements.
Annual Contribution Limitation
For calendar year 2016, the annual limitation on HSA deductions for an individual with self-only coverage under an HDHP is $3,350.
The annual limitation on HSA deductions for an individual with family coverage under an HDHP is $6,750.
High Deductible Health Plan
For calendar year 2016, a “high deductible health plan” 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, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
