2013 tax limits for health savings accounts

by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits updated 5/10/2012

The maximum individual contribution to a health savings account is raised to $2,650 in 2013 to account for inflation. Family contribution is raised to $5,200. The contributions for family coverage and those who are covered less than 365 days are calculated as a percentage of the individual maximum.

Insurance plans that enable qualification for a health savings account will also change in 2013 to account for inflation. In 2013, the limit on maximum policy owner expenses may be no more than $5,100 for single coverage or $10,200 for family coverage. The minimum expense remains at $1,000 for single coverage and $2,000 for family coverage. Most health insurance plans still do not state maximum policyholder expenses as a single number and therefore do not meet the federal requirement. A growing number of health insurance companies have announced plans to launch a qualifying health insurance plan in 2013 or 2014.

Freedom Benefits manages HealthSavingsAccount-HSA.com that includes a comprehensive FAQ on health savings accounts and enrollment forms for the nation’s most popular providers of these accounts. All health savings accounts offered by Freedom Benefits Association at www.FreedomBenefits.org will automatically be updated with the new limits. The FAQs and enrollment forms will be also updated with the 2013 tax laws.

Editor' s Note: The term "maximum policyholder expense" is introduced in this article to underscore the difference between the HDHP definition of out-of-pocket expense in the tax law and the more common usage used by health plans to refer to a combination of deductible and co-payment expense. Earlier articles on this site and others did not make a distinction, possibly creating some confusion.

Tony Novak is a member of the Pennsylvania Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants and an accredited member of the Better Business Bureau.

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