Last week, the IRS set the 2016 Health Savings Account contribution limits. While we don't usually associate the IRS with good news, they announced that they are raising the maximum allowable contribution to a family HSA account by $100 for 2016.
The IRS decided not to change the single HSA maximum so it will remain at $3,350 and the family maximum increased modestly by $100. They lowered the minimum deductible amount by $50 to $1,300 from $1,350 to make it easier for a plan to qualify as a qualified high deductible health plan (QHDHP) in CY 2016.
2016 HSA Maximum
- Single: $3,350 (2015 it was $3,350)
- Family: $6,750 (2014 it was $6,650)
2016 HSA Minimum Deductible
- Single: $1,300 (2015 it was $1,350)
- Family: $2,600 (2015 it was $2,600)
2016 Out of Pocket
- Single: $6,550 (2015 they were $6,450)
- Family: $13,100 (2015 they were $12,900)
HSA catch-up contributions for those age 55 and older are still $1,000 (no change)
Thankfully, the IRS decided to release these dollar limits with ample time for businesses to prepare for open enrollment for the 2016 employee benefit year.. If you are an employer and do not offer a qualified health plan, then employees with family coverage (in the 39.6% marginal tax bracket) are being forced to pay an additional $2,673 year.
81% of employers offer such a plan as an option in 2015 and one-third provide a consumer-driven health plan as the only option, according to the National Business Group on Health. AWANE specializes in helping you stay compliant, and have a strong strategy moving forward, especially with the countless regulations coming into play over the next several years. AWANE offers a successful rewards program, helping members earn money back for maintaining their health. We have continued to have 99% retention, and offer the best customized health insurance plans for your small business.
Please contact us to learn more about our programs and why employee benefits doesn't have to be a burden on your business. We keep our members best interests at the center of everything we do!