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IRS announces HSA/HDHP limits for 2017

August 12, 2016 Article 1 min read
Authors:
Jonathon Trionfi
The IRS announced the inflation-adjusted limits for health savings accounts and high deductible health plans for 2017. Our bulletin gives you important dates and action steps related to the changes.

Overview

On April 29, 2016, the Internal Revenue Service (IRS) releasedRevenue Procedure 2016-28 to announce the inflation-adjustedlimits for health savings accounts (HSAs) and high deductiblehealth plans (HDHPs) for 2017. These limits include:

  • The maximum HSA contribution limit
  • The minimum deductible amount for HDHPs
  • The maximum out-of-pocket expense limit for HDHPs

These limits vary based on whether an individual has self-onlyor family coverage under an HDHP.The minimum deductible and maximum out-of-pocket limits forHDHPs will not change for 2017 plan years. The only limit thatwill change for 2017 is the HSA contribution limit for individualswith self-only coverage under an HDHP, which will go up by$50.

Action steps

Because the limits for HDHPs will not change for 2017,employers that sponsor these plans will not need to make plandesign changes to comply with the IRS’ rules for HDHPminimum deductibles and maximum out-of-pocket limits.

However, if an employer communicates the HSA contribution limits to individuals as part of the enrollmentprocess, these enrollment materials should be updated to reflect the increased limit that will apply to individualswith self-only HDHP coverage for 2017.

HSA/HDHP limits

The following chart shows the HSA/HDHP limits for 2017 as compared to 2016. It also includes the catch-upcontribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflationand stays the same from year to year.

Table describing the change in HSA/HDHP limits from 2016 to 2017

The information provided is only a generalsummary and is being distributed with theunderstanding that PM Group Benefit AdvisorsII, LLC is not providing legal, tax, accounting, orother professional advice, position, or opinionson specific facts or matters and, accordinglyassumes no liability whatsoever in connectionwith its use. Content ©2015 Zywave, Inc. Allrights reserved.

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