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The 2014 Health Savings Account Limits Have Been Announced

Health savings account

The savings limits for the ever-popular Health Savings Accounts (HSA) are now set for 2014. The new limits are outlined here with current year amounts noted for comparison purposes.

What is an HSA?

An HSA is a tax advantaged savings account where part of your wages can be contributed on a pre-tax basis. There is no tax on the funds contributed or the interest or investment earnings as long as the funds are used to pay for qualified medical, dental and vision expenses. To qualify for this tax-advantaged account you must be enrolled in a “high deductible” health insurance program as defined by HSA rules.

 

 The Limits

Health Savings Account (HSA) Limits

2013

NEW! 2014

Change

Maximum Annual Contribution

Self

$3,250

$3,300

+$50

Family

$6,450

$6,550

+$100

Add: 55+ catch up
contribution

$1,000

$1,000

no change

Health Insurance Requirements

Minimum Deductible

Self coverage

$1,250

$1,250

no change

Family coverage

2,500

2,500

no change

Out-of-pocket Maximum

Self coverage

$6,250

$6,350

+$100

Family coverage

12,500

12,700

+$200

Note: To qualify for an HSA you must have a qualified High Deductible Health Plan (HDHP). To qualify, a plan must meet minimum deductible requirements that are typically higher than traditional health insurance. In addition, your coverage must have reasonable out-of-pocket payment limits as set by the above noted maximums.

For assistance with this or other tax or accounting matters please contact us at 201-947-8081 or 646-688-2807, or email us at info@bergencountycpa.com.

 

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