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...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...
OECD calls for coordinated fight against corporate tax avoidanceDavid Jolly of the New York Times reported that dozens of countries with the most advanced economies have agreed on principles for concrete action to prevent...
Upcoming CPE Webinars
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.