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2013 tax limits for health savings accounts
by Tony Novak, CPA, MBA, MT
, revised 5/10/2012
The maximum individual contribution to a health savings account is raised to $3,250 in 2013 to account for inflation. Family contribution is raised to $6,450. The contributions for family coverage and those who are covered less than 365 days are calculated as a percentage of the individual maximum.
Insurance plans that enable qualification for a health savings account will also change in 2013 to account for inflation. In 2013, the maximum policy deductible may be no more than $5,100 for single coverage or $10,200 for family coverage. The minimum policy deductible is $1,250 for single coverage and $2,500 for family coverage.
A growing number of health insurance companies have announced plans to launch a qualifying health insurance plan in 2013 or 2014.
Freedom Benefits manages the Web site www.HealthSavingsAccount-HSA.com that includes a comprehensive FAQ on health savings accounts and enrollment forms for the nation’s most popular providers of these accounts. All health savings accounts offered by Freedom Benefits Association at www.FreedomBenefits.org will automatically be updated with the new limits. The FAQs and enrollment forms will be also updated with the 2013 tax laws.
Editor' s Note: The term "maximum policyholder expense" is introduced in this article to underscore the difference between the HDHP definition of out-of-pocket expense in the tax law and the more common usage used by health plans to refer to a combination of deductible and co-payment expense. Earlier articles on this site and others did not make a distinction, possibly creating some confusion.
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Opinions expressed are the solely those of the author and do not represent the position of any other person, company or entity mentioned in the article. Information is from sources believed to be reliable but cannot be guaranteed. Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues or a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Tony Novak operates as an independent adviser under the trademarks "Freedom Benefits", "OnlineAdviser" and "OnlineNavigator" but is not a representative, agent, broker, producer or navigator for any securities broker dealer firm, federal or state health insurance marketplace or qualified health plan carrier. He has no financial position in any stocks mentioned. Novak does work as an accountant, agent, adviser, writer, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to other companies including the companies listed in the articles on this web site.
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