Pioneers in 5 Star Service • Ronstadt Insurance • Tucson, AZ • 520-721-4848

IRS Announces 2012 HSA, HDHP Limits

The IRS has released the Health Savings Account (HSA) contribution limits for 2012, as well as the minimum deductible amounts and maximum out-of-pocket expense limits for HSA-connected high-deductible health plans (HDHP).

The HSA contribution limit for individuals with single HDHP coverage will be $3,100, a $50 increase. Individuals with family HDHP coverage will be able to contribute $6,250 to an HSA, a $100 increase.

The minimum required HDHP deductible will remain $1,200 for single HDHP coverage, and $2,400 for family HDHP coverage.

The maximum limit on out-of-pocket expenses (e.g., deductibles, co-payments, and other amounts, but not premiums) will increase by $100 to $6,050 for single HDHP coverage and by $200 to $12,100 for family HDHP coverage.

In order for an individual to remain HSA-eligible, his or her HDHP coverage must be within these deductible and out-of-pocket expense requirements.

The limit on catch-up contributions to HSAs will remain stable in 2012 at $1,000. If an individual is at least age 55 by the end of the year, then they can contribute as much as an extra $1,000 to their HSA for 2012.

The IRS may adjust these HSA and HDHP requirements each year to match the changing costs of living.