Each year, the Internal Revenue Service (IRS) announces new contribution limits for health savings accounts (HSA), health flexible spending accounts (health FSA), and dependent care flexible spending accounts (dependent care FSA) in order to adjust for inflation. The 2017 contribution limits have been adjusted as follows:
Up from $3,350 for 2016, the limitation on deductions for self‑only coverage of an individual under a high deductible health plan (HDHP) is $3,400. The limitation for an individual with family coverage remains unchanged from 2016 at $6,750.
For 2017, an HDHP is classified as a health plan with a minimum annual deductible of $1,300 for self‑only coverage or $2,600 for family coverage. The annual out‑of‑pocket expenses, including deductibles, co‑payments, and other non‑premium amounts, cannot exceed $6,550 for self‑only coverage or $13,100 for family coverage. The minimum deductible and maximum out‑of‑pocket limits have not changed from 2016.
The annual dollar amount that an employee can contribute to employer‑sponsored health FSAs has risen to $2,600 for 2017. This is up from $2,550 for 2016.
Dependent Care FSAs
For 2017, the annual dollar amount that an employee can contribute to employer‑sponsored dependent care FSAs is $5,000, unchanged from 2016. g
For more information on contribution limits, please contact Joe Musumeci at 443‑725‑5395.