The Internal Revenue Service has changed the inflation-adjusted annual limitation for health savings accounts for next year.
Revenue Procedure 2013-15, released Thursday by the IRS, provides the 2014 inflation-adjusted amounts for health savings accounts. The annual limitation on deductions under Section 223(b)(2)(A) of the Tax Code for an individual with self-only coverage under a high-deductible health insurance plan is $3,300.
For calendar year 2014, the annual limitation on deductions under Section 223(b)(2)(B) for an individual with family coverage under a high-deductible health insurance plan is $6,550.
For calendar year 2014, a “high deductible health plan” is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (including deductibles, co-payments and other amounts, but not premiums) do not exceed $6,350 for self-only coverage or $12,700 for family coverage.
The revenue procedure is effective for calendar year 2014 and will be published in Internal Revenue Bulletin 2013-21 on May 20, 2013.