The 2017 HSA contribution limits will increase for some people based on IRS rules.
For 2017 the annual contributions to an HSA are $3,400 for an individual and $6,750 for a family. This amount is an increase of $50 over 2016 HSA contribution limits.
The maximum contribution limit includes both the employee and employer portion. For example:
- You’re single and your employer contributes $400 to your HSA as a perk for signing up
- You’re allowed to contribute $3,000 more in 2017
- You would be at the maximum allowed contribution of $3,400 at that point.
Eligibility for HSAs
You must be enrolled in a high-deductible health plan (HDHP) to participate in an HSA.
Under the IRS rules, an HDHP is defined as having an annual deductible of $1,300 or more for individuals and $2,600 for families. Annual out-of-pocket expenses (including deductibles, co-pays, etc. but not premiums) can’t exceed $6,550 for individuals and $13,100 for families. These minimums and maximums remain unchanged in 2017 from their 2016 amounts.
HSA Catch-up contributions
If you are age 55 or older, there is an HSA catch-up provision that allows you to contribute an extra $1,000 to your HSA in 2017. This limit is the same as it was in 2016.
Additionally you can make your catch-up contribution at any time during the calendar year.
Use your HSA to get health insurance savings
With the skyrocketing costs of healthcare for some people, health insurance savings is a big deal. So you can hack your HSA to save money now and during retirement. Read how to get health insurance savings by using your HSA to save you money.
You can read the IRS release on the changes to annual contribution limits for HSAs here.
Why you should contribute to your HSA
HSAs are one of the most underutilized employer benefits. If you have access to one, learn the ins and outs of HSAs and how they can save you money. You could be throwing money away you didn’t even know about if you’re not using your HSA.
You might also consider Christian insurance for health insurance savings if you don’t have access to an HSA and are tired of paying huge premiums.