Little Change in HSA Tax Deduction Caps, High-Deductible Health Plan Limits for 2016

The annual limitation on tax deductions on health savings account contributions by individuals with family coverage under a high-deductible health plan is increasing 1.5 percent to $6,750 for calendar year 2016, the Internal Revenue Service said in new guidance.

By contrast, the $3,350 limitation for those who have self-only coverage under an HDHP isn’t changing for CY 2016, the agency said in Revenue Procedure 2015-30, issued May 4.

HSAs are tax-advantaged accounts that must be paired with an HDHP, and to which employers and employees may contribute funds for an employee’s tax-qualified health benefit expenses. Individuals can claim deductions, up to ...