New HSA Guidelines for 2014
Here are some highlights for 2014.
|
Annual:
|
2014
|
2013
|
|
Minimum
Individual Deductible
|
$1,250
|
$1,250
|
|
Minimum
Family Deductible
|
$2,500
|
$2,500
|
|
Maximum
Individual Out-of-Pocket (in network)
|
$6,350
|
$6,250
|
|
Maximum
Family Out-of-Pocket (in network)
|
$12,700
|
$12,500
|
|
Maximum
HSA Individual Contribution
|
$3,300
|
$3,250
|
|
Maximum
HSA Family Contribution
|
$6,550
|
$6,450
|
- Maximum
contributions are $3300 for an individual (up $50) and $6550 for a family
(up $100). Person’s aged 55 years old and older can add an additional $1000/year
as a catch up contribution (no change).
- Minimum
Deductibles are the same. The minimum deductible for an individual plan is
$1,250 and for a family it is $2,500.
- Catch
up contributions for those 55 years old and older is still $1,000/year.
- Maximum out of pocket has changed. The maximum out of pocket (including deductible) on an individual plan is now $6350 (up $100) and for a family it is $12,700 (up $200).
Items that haven’t changed, but
are beneficial to know.
- You
can put the full amount in immediately without waiting (This even applies
to new hires or a person starting an HSA qualified health plan in the
middle of a calendar year).
- You can put the maximum contribution into your HSA account, regardless of your deductible.
- A person can choose to accumulate HSA qualified expenses over the course of years (instead of taking the expenses out of the HSA account at the time of service). Every year they need to fill out a Form 8889 and carry the balances forward. At 65 years old, they can then take a distribution equal to the total amount of expenses incurred tax free.
- An individual can take a one-time distribution from their IRA to fund their HSA account.
- As always, you have until April 15th (or when you file your taxes) to contribute to your HSA savings account for last year.
Check with your accountant for more information on how this
would specifically apply to you.
Here is a link to the original IRS announcement: http://www.irs.gov/pub/irs-drop/rp-13-25.pdf.
Copyright 2013 Robert C Slayton
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