IRS announces new HSA limits for 2012

The IRS has released the 2012 cost-of-living adjustments affecting health savings accounts. The HSA contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged for the third year in a row.

[See also: 2012 HSA and FSA cheat sheet]

Here are the details:

  • HSA Contribution Limits: The 2012 annual HSA contribution limit for individuals with self-only HDHP coverage is $3,100 (a $50 increase from 2011), and the limit for individuals with family HDHP coverage is $6,250 (a $100 increase from 2011).
  • HDHP Minimum Required Deductibles: The 2012 minimum annual deductible for self-only HDHP coverage remains $1,200 and the deductible for family HDHP coverage remains $2,400.
  • HDHP Out-of-Pocket Maximum: The 2012 maximum limit on out-of-pocket expenses (including items such as deductibles, co-payments, and co-insurance, but not premiums) for self-only HDHP coverage is $6,050 (a $100 increase from 2011), and the limit for family HDHP coverage is $12,100 (a $200 increase from 2011).

Everything else, including eligible expenses and penalties, remains as is. As a reminder, as of Jan. 1, over-the-counter medications (with the exception of insulin) are no longer a covered expense under an HSA, FSA, or HRA without a doctor’s prescription, and the penalty for using HSA funds for ineligible expenses increased from 10 percent to 20 percent.

About the Author
Eric Johnson

Eric Johnson

Eric Johnson is the co-founder of ComedyCE.com, a continuing education company designed to make learning fun. A nationally recognized speaker and frequent contributor to several industry publications, Eric spends much of his time studying the health reform legislation and translating it into terms that everyone can understand. He can be reached at eric@comedyce.com or on LinkedIn at www.linkedin.com/in/ericjohnson262.


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