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...
Lois Lerner isn’t a Superwoman, but she’s showing at least as much resilience as Lois Lane.A new report released on March 11 by the House Committee on Oversight and Government Reform, one of several government...
Each tax-filing season poses different challenges for small business owners – from understanding the new tax laws and regulations to preparing new forms and disclosures.But according to Kevin Anderson and Doug Bekker,...
In Denver, state legislators are probably thinking, "Why didn't we think of this earlier?" The state of Colorado's retail marijuana sales (separate from medical marijuana sales) in January alone generated...
Upcoming CPE Webinars
BAR is an acronym for: Boundaries, Authority and Role. This simple tool will provide participants with a solid understanding of leadership essentials to improve their performance.
This material is designed to provide a start-to-finish overview of how to plan and complete high-quality small audits efficiently.
In this session Excel expert David H. Ringstrom, CPA shares numerous techniques that you can use to work with charts more efficiently.
Key Accounting and Reporting Issues for Nonprofits No. 1: Overview and Statement of Financial Position
This material focuses on non-profit organizations organization, accounting and reporting.