<img src="//bat.bing.com/action/0?ti=5067266&amp;Ver=2" height="0" width="0" style="display:none; visibility: hidden;">
GET STARTED

Small Business Employee Benefits and HR Blog

2016 HSA Contribution Limits

February 4, 2016
XL_office_desk_work_hero

2016 HSA Contribution Limits

A Health Savings Account (HSA) is a tax-advantaged savings account paired with a qualified high-deductible health plan (HDHP). With an HSA there is an annual contribution limit adjusted each year by the IRS.

This article outlines the HSA contribution limits, and other HSA guidelines, for 2016.

HSA Guidelines for 2016

 

HSA Contribution Limit

HDHP Minimum Deductible

HDHP Maximum Out-of-Pocket

HSA 55+ additional contribution amount

Single

$3,350

$1,300

$6,550

$1,000

Family

$6,750

$2,600

$13,100

$1,000

Compared to the 2015 HSA contribution limits:

  • The HSA contribution limit did not change for single, and increased $100 for family.

  • The HDHP minimum deductible did not change.

  • The HDHP maximum out-of-pocket amount increased $100 for a single, and increased $200 for a family.

  • The "catch-up" amount for those age 55 years and older did not change. 

HSA contributions for the 2016 tax year may be made until April 15, 2017. If you use an HSA to pay for unqualified medical expenses in 2016, the tax penalty is 20% of the HSA distribution.

The 2016 HSA guidelines were released by the IRS in Revenue Procedure 2015-30.

Additional HSA Resources

Conclusion

An HSA is a financial account established by an individual or family to pay for qualified medical expenses tax-free, and to save for the future. In 2016, the HSA contribution limit is $3,350 for single and $6,750 for family.

Editor's Note: This post was originally published in July 2015.

Do you have a question about HSAs? Leave a comment below. We’ll help answer it.

Want to offer a QSEHRA without the hassle?
Let PeopleKeep automate your benefits for you.
SEE HOW IT WORKS
meeting_wide-1 CTA_purp_R