IRS Announces Limits for Health Savings Accounts and High-Deductible Health Plans for 2017

McDermott Will & Emery
Contact

In Depth

Recently the Internal Revenue Service (IRS) announced (see Revenue Procedure 2016-28) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2017.  Although one of the dollar limits currently in effect for 2016 will change, the majority of the limits will remain unchanged for 2017, with some of the limits remaining unchanged since 2015.  The table below compares the applicable dollar limits for HSAs and HDHPs for 2016 and 2017.

HEALTH AND WELFARE PLAN LIMITS

2017

2016

HDHP – Maximum annual out-of-pocket limit (excluding premiums):

Self-only coverage

$6,550

$6,550

Family coverage

$13,100

$13,100

HDHP – Minimum annual deductible:

Self-only coverage

$1,300

$1,300

Family coverage

$2,600

$2,600

HSA – Annual contribution limit:

Self-only coverage

$3,400

$3,350

Family coverage

$6,750

$6,750

Catch-up contributions (age 55 or older)

$1,000

$1,000

Plan sponsors should update payroll and plan administration systems for the 2017 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, like open enrollment and communication materials, plan documents and summary plan descriptions.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McDermott Will & Emery | Attorney Advertising

Written by:

McDermott Will & Emery
Contact
more
less

McDermott Will & Emery on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.