The IRS has announced new inflation adjusted amounts applicable in 2013 for Health Savings Accounts (HSAs). An HSA is a tax-advantaged account that’s paired with a high-deductible health plan (HDHP). An HDHP is “catastrophic” health coverage that pays benefits (with some exceptions) only after you’ve satisfied a high annual deductible. For 2013, the annual deductible for an HSA-qualified HDHP must be at least $1,250 for individual coverage and $2,500 for family coverage (up from $1,200 and $2,400 respectively, in 2012).
Once you’ve satisfied your deductible, the HDHP will provide comprehensive coverage for your medical expenses (though you may continue to owe co-payments or coinsurance costs until you reach your plan’s annual out-of-pocket limit). In 2013, a qualifying HDHP must limit annual out-of-pocket expenses (including the deductible) to no more than $6,250 for individual coverage ($6,050 in 2012) and $12,500 for family coverage ($12,100 for 2012). Once this limit is reached, the HDHP will cover 100% of your costs, as outlined in your policy.
For 2013, you can contribute up to $3,250 to an HSA for individual coverage (up $150 from 2012) and $6,450 for family coverage (a $200 increase from 2012). This annual limit applies to all contributions, whether they’re made by you, your employer, or your family members.
If you have questions or need assistance, contact the Experts at Henssler Financial: 770-429-9166 or experts@henssler.com.
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