Health savings account limits for 2005

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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 $2,650 in 2013 to account for inflation. Family contribution is raised to $5,200. 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 limit on maximum policy owner expenses may be no more than $5,100 for single coverage or $10,200 for family coverage. The minimum expense remains at $1,000 for single coverage and $2,000 for family coverage. Most health insurance plans still do not state maximum policyholder expenses as a single number and therefore do not meet the federal requirement. A growing number of health insurance companies have announced plans to launch a qualifying health insurance plan in 2013 or 2014.

Freedom Benefits manages 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 atwww.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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tonynovak.comThis Web site is independently owned and operated by Tony Novak operating under the trademarks “Freedom Benefits”, “OnlineAdviser” and “OnlineNavigator”. Opinions expressed are the sole responsibility of the author and do not represent the opinion of any other person, company or entity mentioned. Tony Novak 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 and has no financial position in any stocks mentioned. Novak may act as and be compensated as an accountant, agent, adviser, writer, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to the companies listed on this site or other commercial companies and non-governmental insurance exchanges. 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.

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