Tax Tip of the Week | No. 311 | IRS Sets Limits for HSA Deductions for 2016

Tax Tip of the Week | July 15, 2015 | No. 311 | IRS Sets Limits for HSA Deductions for 2016

The Internal Revenue Service has released the inflation-adjusted deduction limitations for annual contributions to health savings accounts in 2016.Revenue Procedure 2015-30 provides the 2016 inflation-adjusted HSA deduction limits, which are updated annually to reflect cost-of-living adjustments.For calendar year 2016, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350.  For calendar year 2016, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,750.Also for 2016, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage, or $2,600 for family coverage, and the annual out-of-pocket expenses (including deductibles, co-payments and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt – the guy behind TTW...until next week.