Tip #291- 2017 Contribution Limits For FSAs And HSAs

Recently the IRS announced inflation adjusted contribution limits for Flexible Spending Arrangements and Health Savings Accounts for the 2017 tax year.

The employee contribution limit to employer sponsored health FSAs increases to $2,600 (up from $2,550 in 2016).

The contribution limit to a Health Savings Account – for an individual with self only coverage under a “qualified” High Deductible Health Plan (HDHP) – increases to $3,400 (up from $3,350 in 2016). With family coverage, the contribution limit remains unchanged at $6,750.

Unchanged for 2017 is the definition of a “qualified” HDHP; i.e., it must have a single deductible no lower than $1,300; $2,600 with family coverage. And, HDHP annual out of pocket charges (e.g., deductibles, co-insurance, etc.) may not exceed $6,550 for an individual; $13,100 for a family.

HSAs. FSAs. HDHPs. You almost need a translator for all the health insurance acronyms.

Here’s another one: HTD.

(Happy Turkey Day!)