IRS Announces HSA/HDHP Limits for 2017

On April 29, 2016, the Internal Revenue Service (IRS) released Revenue Procedure 2016-28 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2017. These limits include:

  • The maximum HSA contribution limit;
  • The minimum deductible amount for HDHPs; and
  • The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

The minimum deductible and maximum out-of-pocket limits for HDHPs will not change for 2017 plan years. The only limit that will change for 2017 is the HSA contribution limit for individuals with self-only coverage under an HDHP, which will go up by $50.

IMPORTANT DATES

January 1, 2017

The new contribution limits for HSAs become effective. The only change for 2017 is the $50 increase to the contribution limit for individuals with self-only HDHP coverage.

2017 Plan Years

The HDHP cost-sharing limits for 2017 apply for plan years beginning on or after Jan. 1, 2017. These limits are the same as the 2016 limits.

HSA/HDHP Limits

The following chart shows the HSA/HDHP limits for 2017 as compared to 2016. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.

 

Type

 

2016

2017 

HSA Contribution Limit

Self-only
Family

$3,350
$6,750

$3,400 (Up $50)
$6,750 (No Change)

HSA Catch-up Contributions¹

Age 55 or older

$1,000

$1,000 (No Change)

HDHP Minimum Deductible

Self-only
Family

$1,300
$2,600

$1,300 (No Change)
$2,600 (No Change)

HDHP Maximum Out-of-pocket Expense Limit²

Self-only
Family

$6,550
$13,100

$6,550 (No Change)
$13,100 (No Change)

¹Not subject to adjustment for inflation

²Deductibles, copayments and other amounts, but not premiums

DISCLOSURE

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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.