The IRS recently announced the health savings account (HSA) rules and requirements for 2015. The HSA 2015 contribution limits, minimum required HDHP deductibles, and out-of-pocket maximums have been increased from 2014.
2015 HSA Contribution Limits
For calendar year 2015, the annual HSA contribution limits are:
Individuals (self-only coverage) - $3,350 (up $50 from 2014)
Family coverage - $6,650 (up $100 from 2014)
HDHP Minimum Required Deductibles
For calendar year 2015, the High Deductible Health Plan (HDHP) required deductibles for an HSA are:
$1,300 for self-only coverage (up $50 from 2014)
$2,600 for family coverage (up $100 from 2014)
The annual out-of-pocket expenses include deductibles, co-payments, and other amounts, but not premiums. For calendar year 2015, the out-of-pocket maximums are:
$6,450 for self-only coverage (up $100 from 2014)
$12,900 for family coverage (up $200 from 2014)
If you use an HSA to pay for unqualified medical expenses, the tax penalty is 20% of the HSA distribution.
Background on Health Savings Accounts
A Health Savings Account, or HSA, is a financial account established by an individual or family to pay for qualified medical expenses.
U.S. federal regulations require citizens to have a minimum deductible on their health insurance from all sources in order to make tax-deductible contributions to their Health Savings Accounts (HSA).
HSAs combine the benefits of both traditional and Roth 401(k)s and IRAs for medical expenses. Taxpayers receive a 100% income tax deduction on annual contributions, they may withdraw HSA funds tax-free to reimburse themselves for qualified medical expenses, and they may defer taking such reimbursements indefinitely without penalties.
HSAs are unique—“IRAs on Steroids”—with triple tax advantages:
- Tax-deductible contributions,
- Tax-free accumulation of interest and dividends tax-free, and
- Tax-free distributions for qualified medical expenses.
The 2015 HSA rules and regulations were released by the IRS in Revenue Procedure 2014-30.