Limits of Health Savings Accounts to Increase in 2014
by Terri Eyden on
By Jason Bramwell
The annual limitation on deductions for individuals with health savings accounts (HSA) will increase in 2014, according to the IRS.
For calendar year 2014, the annual limitation on deductions under §223(b)(2)(A) of the Internal Revenue Code for an individual with self-only coverage under a high-deductible health plan is $3,300, up from $3,250 in 2013.
The annual limitation on deductions under §223(b)(2)(B) for an individual with family coverage under a high-deductible health plan will increase from $6,450 in 2013 to $6,550 in 2014.
According to the IRS, high-deductible health plans in 2014 will have an annual deductible that is "not less than $1,250 for self-coverage or $2,500 for family coverage." Annual out-of-pocket expenses – such as deductibles, copayments, and other amounts that do not include premiums – will not exceed $6,350 for self-only coverage ($100 more than in 2013), or $12,700 for family coverage ($200 more than in 2013).
The IRS defines an HSA as a "tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur."
- Making Taxes Less Taxing
- 2013 Health Care Reform Checklist
- Accountants Debate How to Advise Clients on Health Care Act
You may like these other stories...
Mike "the Situation" Sorrentino, one of the stars on the former TV show "Jersey Shore," is in the middle of…well, a tax situation.On October 23, the erstwhile reality show attraction was arraigned...
Deal to lock in US tax cuts is bubbling up on the HillSome US lawmakers are exploring a post-election deal that would lock in permanent tax cuts for major corporations and low-income families, Richard Rubin of Bloomberg...
For many individuals, a key part of their investment and estate planning is to write yearend checks for gifts to family members. The following reminders will help put your tax planning in perspective for 2014 and beyond, and...