IRS issues HSA contribution limits and high deductible health plan out-of-pocket limits for 2014
The IRS recently issued the HSA contribution limits and high deductible health plan out-of-pocket limits for 2014. Our friends at J. Smith Lanier & Co. issued an update on the 2014 HSA and HDHP Limits and I am sharing their update below.
The annual contribution limit for a health savings account for 2014 will be $3,300 for an individual electing self-only coverage under the HDHP, and $6,550 for family coverage.
High Deductible Health Plan
a. Deductible. For 2014, the minimum deductible for an HDHP will be $1,250 for self-only coverage and $2,500 for family.
b. Out-of-Pocket. The 2014 maximum out-of-pocket limit for an HDHP is $6,350 single; $12,700 family.
NOTE: The above out-of-pocket limits for high deductible health plans are particularly noteworthy for employers, as these will be the overall out-of-pocket limits for all employer-provided health plans; regardless of size; insured or self-funded. Out-of-pocket (termed “cost sharing” in the law) is to be taken literally – the total of deductibles, co-pays, co-insurance; any costs shared by the employee other than premium.
**Source: J. Smith Lanier & Co.