Health Savings Accounts in 2013

More than 11 million people have health coverage through a combination of a high-deductible health plan and a health savings account (HSA). The number of people with HSAs continues to grow annually. To help individuals and companies plan ahead, the IRS has released inflation adjustments for HSAs in 2013.

In order to contribute to an HSA in 2013, an individual must be covered by a high-deductible health plan (HDHP). This means a plan with an annual deductible of at least $1,250 for self-only coverage or $2,500 for family coverage. The plan must limit the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) to no more than $6,250 for self-only coverage or $12,500 for family coverage.

If the HDHP meets these requirements, then the contribution limit for an individual with self-only coverage is $3,250; the contribution limit for an individual with family coverage in 2013 is $6,450. Those who are at least 55 years old by the end of the year can contribute another $1,000.

Keep in mind that individuals who contribute to HSAs can deduct contributions from gross income. However, unless they are self-employed, the premiums they pay for HDHPs are deductible only as itemized deductions.