IRS Announces the Latest HSA Limits for 2013

The IRS has just announced new limits for health savings accounts (HSA) which have been recently adjusted for inflation. Limits that are to go into effect beginning in calendar year 2013 include:

Annual Contribution Limits

For individual coverage, the maximum deductible that may be required under high-deductible health plans is $3,250; an increase of $150 over 2012. For family-coverage plans, the deduction limit for high-deductible health plans has been raised $200 over 2012 to $6,450.

Minimum Deductible

For single coverage plans, the minimum deductible for high-deductible health plans is $1,250; a $50 increase over 2012. The minimum deductible for family plans will increase $100 to $2,500.

Out-of-Pocket Maximum

The max amount an employee will pay out of pocket for a single-coverage high-deductible health plan will increase by $200 to $6,250. Family-coverage plans will experience a $400 increase to $12,500.

A high-deductible health plan is a plan with an annual deductible that falls between $1,250 for self-only coverage and $2,500 for family coverage with annual out-of-pocket expenses (including deductibles, co-payments, and other fees not including premiums) not exceeding $6,250 for individuals or $12,500 for families.

HSA limits are revised each year based on the inflation rate of the prior year. The higher rates reflect adjustments for cost-of-living and other rules contained in Internal Revenue Code section 223.