IRS Releases 2016 Inflation-Adjusted Amounts for Health Savings Accounts

The IRS released the 2016 inflation-adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2016, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350 and for an individual with family coverage under a high deductible health plan is $6,750. 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 do not exceed $6,550 for self-only coverage or $13,100 for family coverage.

Read the IRS publication