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
|HSA Limit||Individual $3,300|
|Individual + $50|
Family + $100
|HSA catch up for 55 or Older||$1,000||$1,000||No Change|
Family + $200
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.
As always, contact us with any questions. Enjoy the Memorial Day Weekend and Thank You to all that have served.
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.