Limits of Health Savings Accounts to Increase in 2014

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."
 
Related articles:
 

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.