*with certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage
A health plan qualifies as a High Deductible Health Plan if the annual minimum deductible is at least $1,300 for single coverage or $2,600 for family coverage and the maximum out-of-pocket limit is $6,550 for single coverage and $13,100 for family coverage for 2015. For 2016, the minimum deductible is $1,300 and the maximum out-of-pocket limit is $6,550 for single coverage. For family coverage the minimum deductible is $2,600 and the maximum out-of-pocket limit is $13,100. These figures are subject to be adjusted by the IRS for inflation each year.
For tax year 2015, contributions are limited to $3,350 for single coverage and $6,650 for family coverage. For tax year 2016, the contribution limit for single coverage is $3,350 and $6,750 for family coverage. A catch-up contribution of $1,000 is available to persons age 55 and older. The contribution limits are adjusted for inflation each year. Contributions may be made for the prior tax year until April 15.
You can make no further contributions after age 65; however, the account may remain open
Effective January 1, 2011, it will no longer be permissible to use the HSA to pay for over the counter medications and other non-prescription drugs without a prescription. The penalty for non-qualified distributions is 20%.
Notes and Disclosures