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Archive for Items Categorized 'Health Savings Accounts'

2018 Health Savings Account Contribution Limits Announced

 

2018 HSA contribution limits:

  • $3,450 for self-only coverage (versus $3,400 in 2017) 
  • $6,900 for family coverage (versus $6,750 in 2017)
  • The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.

HSAs and Same-Sex Couples

Last week the IRS released new rules for same-sex couples reacting to the unconstitutionality of the Defense of Marriage Act. This newsletter reviews those rules from an HSA perspective.

Did the Supreme Court’s 2013 ruling that the Defense of Marriage Act is unconstitutional impact HSAs?

Yes, the ruling changes HSAs for legally married same-sex couples. The Defense of Marriage Act (DOMA) defined marriage as between one man and one women and accordingly did not grant same-sex couples the same rights as opposite sex couples under federal law. Prior to the Supreme Court’s ruling, same-sex couples could not get the benefits afforded “spouses” under HSA law.

Click here to download New HSA Rules for Same-Sex Marriages from our friends at:

HSA Resources Bank

IRS Announces 2014 HSA and HDHP Limits

Rainy Day FundThe Internal Revenue Service (IRS) has announced the 2014 contribution limits, deductible minimums and out-of-pocket maximums for health savings accounts (HSAs) and high-deductible health plans (HDHPs).

  • An HDHP must have a deductible of at least $1,250 for individual coverage and at least $2,500 for family coverage (including a minimum $2,500 embedded individual deductible under family coverage) to qualify an individual to contribute to an HSA. These minimum deductibles are unchanged from 2013.
  • Out-of-pocket maximums for an HSA-qualifying HDHP in 2014 are $6,350 for individual coverage and $12,700 for family coverage. These are increased from $6,250 for individual coverage and $12,500 for family coverage in 2013.
  • Contribution limits for HSAs will be $3,300 for individual coverage and $6,550 for family coverage in 2014. These are increased from 2013’s limits of $3,250 for individual coverage and $6,450 for family coverage. The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.

Are HSAs the New 401(k) Plans?

BY: KATHLEEN KOSTER

As health savings account account balances grow and become sizable assets for employees, they become a powerful – and increasingly necessary – financial planning tool.

For example, a 65-year-old married couple who retired in 2011 with median prescription drug expenses would need $287,000 to have a 90% chance of covering all medical costs after retirement, according to an Employee Benefit Research Institute study.

Retirement expert Kimberly Sexton believes an employee can fund that number by saving via a health savings account.

By saving $5,000 a year in an HSA at a modest 5% rate of return for 25 years before retiring, an employee will have more than the recommended $250,000 to cover retirement medical expenses.

“Health savings account contributions go in tax-free, grow tax-free and come out tax-free,” Sexton explained to benefits managers at EBN’s 2012 Benefits Forum & Expo.

Read More Click here.

2013 Health Savings Account Contribution Announced

What’s new for 2013? HSA contribution limits, HDHP minimum deductibles and out-of-pocket maximums will increase.

HSA Contribution Limits:

  • Individual (self-only HDHP): $3,250($150 increase from 2012)
  • Family: $6,450 ($200 increase from 2012)

Limits for catch-up contributions (for persons over age 55): $1,000 (unchanged from 2012)

HDHP Minimum Required Deductibles:

  • Self-only: $1,250
  • Family: $2,500

HDHP Out-of-Pocket Maximum:

  • Self-only: $6,250 (a $200 increase from 2012)
  • Family: $12,500 (a $400 increase from 2012)

For more information view the IRS change or contact us at (520) 721-4848.