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IRS Limits and Guidelines

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Each year, the IRS establishes guidelines for HSAs and qualified high deductible health plans (HDHPs) based on individual and family coverage:

Maximum contribution limit represents the maximum amount of tax-free savings you can contribute to your HSA each year. If you exceed this amount, you have until the tax-filing deadline to remove excess funds by submitting Excess Contribution Removal Form ($25 fee applies). If excess funds are not removed by the tax-filing deadline, you may be subject to tax penalties and/or IRS fees.

Catch-up contributions of an additional $1,000 can be made by accountholders who meet the qualifications noted below.

  • Health Savings accountholder
  • Age 55 or older (regardless of when in the year an accountholder turns 55)
  • Not enrolled in Medicare (if an accountholder enrolls in medicare mid-year, catch-up contributions should be prorated)

Authorized Signers who are 55 or older must have their own HSA in order to make the catch-up contribution. These contributions can be made by check or through our Internet Banking service.

Minimum deductible is the deductible requirement for an HSA-compatible high-deductible health plan (HDHP).

Maximum out-of-pocket is the annual maximum amount of out-of-pocket expenses an HSA-compatible HDHP can require before paying out benefits.

2014 IRS Limits

  Single Plan Family Plan
Maximum Contribution Limit $3,300 $6,550
Minimum Deductible $1,250 $2,500
Maximum
Out-of-Pocket
$6,350 $12,700
Catch-up Contribution (55+) $1,000 $1,000

2015 IRS Limits

  Single Plan Family Plan
Maximum Contribution Limit $3,350 $6,650
Minimum Deductible $1,300 $2,600
Maximum
Out-of-Pocket
$6,450 $12,900
Catch-up Contribution (55+) $1,000 $1,000

Other important IRS guidelines include:

A one-time rollover from an IRA is allowed up to the annual IRS maximum amounts. Contact your tax advisor to discuss the benefits and tax reporting requirements.

Prorated HSA Contributions

If you do not have HSA-compatible health coverage for an entire calendar year, you must prorate your HSA contributions to avoid tax penalties. Examples are as follows:

Annual Contribution Limit
÷
12 Months X # of months eligible = Prorated Contribution
$3,300
(individual)
÷
12 Months X 4 (months eligible) = $1,100
$6,550
(family)
÷
12 Months X 6 (months eligible) = $3,275

Mid-year Coverage

If your HSA-compatible coverage begins in July, you can contribute the maximum amount for that year provided you maintain coverage until December 31st of the following year.

Health Plan Status Change

If you begin the year with family coverage and switch to single coverage in July of that year, you are eligible to contribute half of the family coverage contribution maximum and half of the individual coverage contribution maximum.