Legislative Brief: HSA Limits Will Increase for 2013

The Internal Revenue Service (IRS) issued Revenue Procedure 2012-26, which increases limits for health savings accounts (HSAs) effective for calendar year 2013. The following HSA limits will increase for 2013.

  • Annual contribution limits for single and family coverage;
  • Maximum out-of-pocket expense limits for coverage under a high deductible health plan (HDHP); and
  • Minimum deductibles for HDHPs.

HSA Contribution Limits

For 2013, the annual HSA contribution limit for an individual with self-only coverage under an HDHP is $3,250 (up from $3,100 for 2012).

For 2013, the annual HSA contribution limit for an individual with family coverage under an HDHP is $6,450 (up from $6,250 for 2012).

HDHP Out-of-Pocket Expense Limits

The maximum out-of-pocket expense (deductibles, co-payments and other amounts, but not premiums) limit for self-only HDHP coverage for 2013 is $6,250, which is up from $6,050 for 2012.

For family HDHP coverage, the maximum out-of-pocket expense limit for 2013 is $12,500, which is up from $12,100 for 2012.

HDHP Deductible Limits

For 2013, the deductibles under an HDHP must be at least $1,250 for self-only coverage (up from $1,200 for 2011 and 2012) and $2,500 for family coverage (up from $2,400 for 2011 and 2012).

**This MedCon Benefit Systems, Inc. Legislative Brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2012 Zywave, Inc. All rights reserved.

Independent Contractors?

If your company uses the services of independent contractors the feds may want to talk with YOU soon! The IRS has recently started a new enforcement strategy to identify independent contractors that should actually be classified as employees.

The new project is set to recoup those payroll taxes on independent contractors as well as penalties and interest. It is expected to raise $7 billion in tax revenue in the next decade. They are targeting industries where they believe employers most commonly misclassify workers.

At the top of the list are: construction related companies, child care, home health care and grocery stores.

If you have questions or concerns about your classifications feel free to contact us, we are happy to help!