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Small Business Employee Benefits and HR Blog

Health Savings Account - HSA 2017 Rules & Requirements

The IRS recently announced the Health Savings Account (HSA) rules and Health Savings Account - HSA 2017 Rules & Requirementsrequirements for 2017. This article reviews the HSA contribution limits, HDHP minimum required deductibles, and out-of-pocket maximums for 2017, as set annually by the Internal Revenue Service (IRS).

2017 Annual HSA Contribution Limits

For calendar year 2017, the annual HSA contribution limits are:

  • Individuals (self-only coverage) - $3,400 (up $50 from 2016)
  • Family coverage - $6,750 (no change from 2016)

2017 HDHP Minimum Required Deductibles

For calendar year 2017, the High Deductible Health Plan (HDHP) required deductibles for an HSA are:

  • $1,300 for self-only coverage (no change from 2016)
  • $2,600 for family coverage (no change from 2016)

2017 HDHP Out-of-Pocket Maximum

The annual out-of-pocket expenses include deductibles, co-payments, and other amounts, but not premiums.

For calendar year 2017, the out-of-pocket maximums are:

  • $6,550 for self-only coverage (no change from 2016)
  • $13,100 for family coverage (no change from 2016)

If you use an HSA to pay for unqualified medical expenses, the tax penalty is 20 percent of the HSA distribution.

The 2017 HSA guidelines were released on April 29, 2016 by the IRS (see Revenue Procedure 2016-28).

Additional Resources to Understand Account-Based Health Plans

HSAs are just one type of account-based health plan employers and employees use for tax-free medical spending or reimbursement.

Wondering how HSAs compare to other type of accounts such as Health Reimbursement Accounts (HRAs) and Flexible Spending Accounts (FSAs)? 

Here are additional resources to help:

What questions do you have about Health Savings Accounts or the guidelines for 2017? Leave a comment below.

Learn the differences between HSAs, HRAs, and FSAs

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