How Much Can You Stash in an HSA Next Year? — Healthshare

How Much Can You Stash in an HSA Next Year?

HSAHealth savings account contribution levels have increased slightly in recent years.  In 2012, an individual could shelter up to $3,100 from taxes this way.  A family could do the same with up to $6,250.  That represented an increase of $50 and $100 respectively over contributions levels of 2011.

This year, the new individual contribution maximum is $3,250 (up $150) and families can deposit $6,450 (up $200).  The $1,000 extra catch-up contribution for those who were at least age 55 was available last year and this year.

HSA Contributions Are Predicted to Increase in 2014

Roy Ramthun, affectionately known as “Mr. HSA,” has come out with some interesting predictions for what HSA plans will be like in 2014.  The IRS will take a while longer to let us know what they say.

Ramthun is virtually certain that the maximum HSA contribution will be raised to $3,300 for individuals and to $6,550 for families.  Ramthun also predicts that the majority of HSA-qualified insurance plans will stay the same next year in spite of Affordable Care Act provisions that take effect in 2014.

Ramthun also says the minimum deductible for HSA-qualified plans will remain unchanged next year.  But, he thinks the out-of-pocket maximum will be raised to $6,350 for individuals and to $12,700 for families.

Two Types of HSA Tax Benefits

Whether or not these predictions are precise, it is certain that having an HSA will continue to provide tax advantages.  All except three states permit HSA contributions to be deducted from taxable income just like they can be used to reduce taxable income on federal returns.

While funds remain in the account, they continue to accumulate earnings that are not subject to taxation.  And, when used to pay for qualified health care, these earnings are never taxed. As the threat of higher taxes continues to loom over us, such tax advantages look better than ever.


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