NB of Maine 2011
Northern Benefits Ltd
IRS Contribution Update
The Internal Revenue Service has  Announced Higher Contribution Limits for Health Savings Accounts for 2014

IRS Revenue Procedure 2013-25 Released May 2, 2013
 
The IRS has announced higher limits for contributions to Health Savings Accounts (HSA's) and for the out-of-pocket limits for the qualified high deductible health plans (HDHP). The higher limits reflect the cost-of-living adjustment and rounding rules under IRS Code Section 223.

The New limits are as follows:

Contributions and Out-of-Pocket Limits for Health Savings Accounts and High Deductible Health Plans


For 2014
For 2013

HSA Limit
Individual $3,300
Family $6,550
Individual $3,250
Family $6,450
Individual + $50
Family + $100
HSA catch up for 55 or Older
$1,000
$1,000
No Change
HDHP Minimum
Deductible
Individual $1,250
Family $2,500
Individual $1,250
Family $2,500
No Change
HDHP Out-of-
Pocket Maximums
Individual $6,350
Family $12,700
Individual $6,250
Family $12,500
Individual +$100
Family + $200


Penalties
 
For those under 65, the penalty for using HSA funds for non-qualified expenses remains at 20% of the funds used for non medical expenses.


Coverage of Dependents

The affordable care act allows parent to cover adult children up to age 26, however the IRS has not changed their definition of an adult child for health savings accounts. Even though the adult child may be covered under the health plan, the account holder may not use their HSA funds.
 
 



As always, contact us with any questions. Enjoy the Memorial Day Weekend and Thank You to all that have served.

 

Northern Benefits of Maine, LLC
Adam Sturtevant, Regional Vice President
email: adam@mainebenefits.com
website: www.mainebenefits.com