IRS Announces 2017 HSA/High Deductible Health Plan Limits

May 05, 2016

On April 29, 2016, the Internal Revenue Service (IRS) released Revenue Procedure 2016-28 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2017. These limits include:

• The maximum HSA contribution limit effective January 1, 2017;
• The minimum deductible amount for HDHPs for 2017 plan years; and
• The maximum out-of-pocket expense limit for HDHPs for 2017 plan years.

These limits vary based on whether an individual has self-only or family coverage under an HDHP. The minimum deductible and maximum out-of-pocket limits for HDHPs will not change for 2017 plan years. The only limit that will change for 2017 is the HSA contribution limit for individuals with self-only coverage under an HDHP, which will go up by $50.

The following chart shows the HSA/HDHP limits for 2017 as compared to 2016. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.

Type of Limit		2016	2017	Change
HSA Contribution Limit	Self-only	$3,350	$3,400	Up $50
	Family	$6,750	$6,750	No Change
HSA Catch-up Contributions (not subject to adjustment for inflation)	Age 55 or older	$1,000	$1,000	No Change
HDHP Minimum Deductible [1]	Self-only	$1,300	$1,300	No Change
	Family	$2,600	$2,600	No Change
HDHP Maximum Out-of-Pocket Expense Limit (deductibles, copayments and other amounts, but not premiums)	Self-only	$6,550	$6,550	No Change
	Family	$13,100	$13,100	No Change

[1] higher minimum deductible amounts may apply for California insurance policies to comply with California state law requirements

For additional information, please contact your Burnham Benefits Consultant or Burnham Benefits at 949-833-2983 or inquiries@burnhambenefits.com.

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Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.

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