The IRS announced contribution limits for Health Savings Account (HSA) for 2013.
HSA Contribution Limits
| 2012 | 2013 | Change | |
| Individual Coverage | $3,100 | $3,250 | +$150 |
| Family Coverage | $6,250 | $6,450 | +$200 |
You can only contribute to an HSA if you have a High Deductible Health Plan (HDHP).
HDHP Qualification
The IRS also defines what qualifies as an HDHP. For 2013, an HDHP with individual coverage must have at least $1,250 in annual deductible and no more than $6,250 in annual out-of-pocket expenses. For family coverage, the numbers are minimum $2,500 in annual deductible and $12,500 in annual out-of-pocket expenses.
| 2012 | 2013 | Change | |
| Individual Coverage | |||
| min. deductible | $1,200 | $1,250 | +$50 |
| max. out-of-pocket | $6,050 | $6,250 | +$200 |
| Family Coverage | |||
| min. deductible | $2,400 | $2,500 | +$100 |
| max. out-of-pocket | $12,100 | $12,500 | +$400 |
HSA vs. FSA
I chose an HDHP and HSA for the first time this year. So far so good. I like the flexibility provided by the HSA over the FSA, which I used in the past. No more guesses on how much I should put in every year.
I’m using the HSA provider my employer chose because I get to save a bit of FICA tax if I contribute by payroll deduction. After the year is over, I’m planning to write a check and transfer the balance to my own HSA.
Reference: IRS Revenue Procedure 2012-26
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Financial Advice for Young Professionals says
My HSA offers pretty good investment choices so I don’t see a need to trasnfer to a different HSA provider. Is this the reason why you do it? My employer’s HSA charges $12/ quarter, but I guess there’s no way to get around that as long as I am still contributing to it every year
Harry Sit says
The HSA provider my employer picked doesn’t have good investment choices. The account doesn’t pay much interest either.
Rabbmd says
Nothing says you have to only have one hsa account. I use an alliant hsa for savings account interest that is tax deferred for my emergency fund. I use td ameritrade hsa bank brokerage window for vanguard etfs for investments. Ive been contributing more to my alliant account as i am trying to get all but $15,000 of my emergency fund into either i bonds or hsa savings to avoid coming tax increases on interest with the healthcare bill. I pay for medical things out of pocket and save the receipts.
KS says
Thanks for that update, I saw it first on your site. i was not aware those numbers were coming out.
Tangentially speaking (sorry, not related directly to this post on HSA numbers), you know what I would really like to see (hint hint) is a chart which shows all the IRS/SS indexed numbers which are updated every year. But not what the numbers are, but when the numbers are typically released. I.e. My employer “match” is based on a formula tied to the social security wage base. Depending on the relative increase (if any) in my salary, and the relative increase in the wage base, my overall compensation can go down, even if I get a raise. So I spent a good deal of time trying to find out when the social security wage base is announced. But the SSWB is tied to an “average wage index”, so I thought perhaps this average wage index might be found somewhere even prior to the official SSWB calculation?
I think that items such as retirement contribution limits, FSA limits, etc are typically released in October no? Also, sometimes I like to know when CPI-U/W are released, so that I can see how rates are changing on I-bonds.
Does anyone know of a link/resource which may have all of this information in one place? Perhaps there are even number released which I would be interested in but which I don’t know that I would be interested in.
But seeing your update on the HSA number made me realize hey! why did this number come out today, and not together with other related information (i.e FSA accounts) and hmm, just exactly WHEN are all those other numbers officially released anyway.
Harry Sit says
KS – Thank you for the suggestion. I will do that some time.
Deacon says
We have an HDHP with an HSA and think it is great! We get to determine how much to stock away for health care costs instead of wasting money on high and often unused health care premiums.
Lizzie says
I believe the 2013 HDHP minimum deductible for individual is $1250 and for family is $2500.
Harry Sit says
Lizzie – Thank you. Corrected.
AB says
Text is still wrong for 2013 deductible.
Harry Sit says
AB – Fixed, thank you.