2014 Health Savings Account Limits Announced

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	nc

Health Insurance Requirements
Minimum Deductible	Self coverage	$1,250	$1,250	nc
Minimum Deductible	Family coverage	2,500	2,500	nc
Out-of-pocket Maximum	Self coverage	$6,250	$6,350	+$100
Out-of-pocket Maximum	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.

Not sure what an HSA is all about? Check with your employer. If they offer this option in their health care benefits, they will have information discussing the program and its potential benefits.