The
savings limits for the ever-popular Health Savings Accounts (HSA) are now set
for 2014. The new limits are outlined here with current year amounts noted for
comparison purposes.
What is an HSA?
An HSA
is a tax advantaged savings account where part of your wages can be contributed
on a pre-tax basis. There is no tax on the funds contributed or the interest or
investment earnings as long as the funds are used to pay for qualified medical,
dental and vision expenses. To qualify for this tax-advantaged account you must
be enrolled in a “high deductible” health insurance program as defined by HSA
rules.
The limits
Health Savings Account (HSA) Limits
|
2013
|
NEW! 2014
|
Change
|
Maximum Annual
Contribution
|
|
|
|
|
Self
|
$3,250
|
$3,300
|
+$50
|
Family
|
$6,450
|
$6,550
|
+$100
|
Add: 55+ catch up
contribution
|
$1,000
|
$1,000
|
nc
|
|
|
|
|
|
Health Insurance
Requirements
|
|
|
|
|
Minimum Deductible
|
Self coverage
|
$1,250
|
$1,250
|
nc
|
Family coverage
|
2,500
|
2,500
|
nc
|
Out-of-pocket Maximum
|
Self coverage
|
$6,250
|
$6,350
|
+$100
|
Family coverage
|
12,500
|
12,700
|
+$200
|
|
Note: To
qualify for an HSA you must have a qualified High Deductible Health Plan
(HDHP). To qualify, a plan must meet minimum deductible requirements that are
typically higher than traditional health insurance. In addition, your coverage
must have reasonable out-of-pocket payment limits as set by the above noted
maximums.
Not sure what an HSA
is all about? Check with your employer. If they offer this option in their
health care benefits, they will have information discussing the program and its
potential benefits.
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