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Health Savings Account Cost-of-Living Adjustments for 2016

May 07, 2015

The Internal Revenue Service has announced the annual cost-of-living adjustments for health savings account (HSA) contribution limits for calendar year 2016. These limits apply for qualifying high-deductible health plan (HDHP) deductibles and out-of-pocket maximums. Plan sponsors should verify that their administrative and payroll systems reflect the appropriate limits. 

2015 2016
Limit on HSA Contributions* - single coverage $3,350 $3,350
Limit on HSA Contributions* - family coverage $6,650 $6,750
HDHP Required Minimum Deductible – single coverage $1,300 $1,300
HDHP Required Minimum Deductible – family coverage $2,600 $2,600
HDHP Out-of-Pocket Maximum – single coverage $6,450 $6,550
HDHP Out-of-Pocket Maximum – family coverage $12,900 $13,100

* The figures above do not include the catch-up contribution limit, which is $1,000 for participants age 55 or older. Catch-up contributions can be made any time during the year in which the HSA participant turns 55. Note that two catch-up contributions (i.e., for spouses) may not go into the same HSA account because it is an individual account. The second catch-up contribution must be deposited to another HSA account in the name of the other spouse.

If you have any questions, or for more information about the 2016 HSA cost-of-living adjustments, please contact Pam Branshaw, Tom KriegBob Buss, or your Wipfli relationship executive.