The IRS issued the 2014 cost-of-living adjustments (COLAs) applicable to dollar limitations for Health Savings Accounts (HSAs) in Revenue Procedure 2013-25. These COLAs generally include increases to the annual contribution limitation and the requirements of a high deductible health plan (HDHP). The annual contribution limitation increased from $3,250 in 2013 to $$3,300 in 2014 for self-only coverage and $6,450 in 2013 to $6,550 in 2014 for family coverage. The amounts for the HDHP out-of-pocket expense cap have also increased for 2014 to $6,350 for self-only coverage and $12,700 for family coverage. The minimum deductible amounts for HDHPs for 2014 have remained the same as 2013 at $1,250 for self-only coverage and $2,500 for family coverage.
These new figures can be used to plan for HDHP insurance coverage and HSA funding for 2014.
Read More: Tax Forms and Instructions 26 CFR 601.602