IRS sets 2016 health savings account contribution limits

The maximum contributions that can be made to health savings accounts in 2016 will increase $100 for families, but remain unchanged for individuals.

The Internal Revenue Service announced Monday that the maximum contribution that can be made next year to an HSA linked to a high-deductible plan will be $6,750 for employees with family coverage, up from $6,650, while the maximum contribution for those with single coverage will remain at $3,350.

However, maximum out-of-pocket expenses will increase in 2016 for both categories.

Maximum out-of-pocket employee expense, including deductibles, will rise $100 next year to $6,550 for single coverage, and increase $200 next year to $13,100 for family coverage.

For 2016, a high-deductible health plan is defined as a one with an annual deductible of least $1,300 for self-only coverage and $2,600 for family coverage.

Increases in the HSA limits, which are detailed in Revenue Procedure 2015-30, are tied to changes in the cost of living.