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IRS announces 2017 inflation adjustments for health savings accounts

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Tax Hot Topics: 2017 HSA inflation adjustmentsThe IRS announced the inflation-adjusted amounts for contributions, plan deductibles and out-of-pocket expenses for health savings accounts (HSAs) for 2017. Rev. Proc. 2016-28 sets the 2017 limit on HSA contributions at $3,400 for an individual with self-only coverage and $6,750 for an individual with family coverage. To qualify for an HSA, an individual must have group health plan coverage that’s under a high deductible health plan (HDHP). The guidance says that in 2017, HDHPs must have an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and annual out-of-pocket expenses cannot exceed $6,550 for self-only coverage or $13,100 for family coverage.  

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