2015 HEALTH SAVINGS ACCOUNT (HSA) LIMITS

Following are the 2015 & 2014 HSA limits determined by the Internal Revenue Service (IRS):

NOTE:  Catch up contributions for individuals who are age 55 or older remains at $1,000 for 2015.

REMINDERS

·       Individuals who are eligible individuals on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contributions, if 55 or older by year end) regardless of the number of months the individual was an eligible individual in the year.  However, the individual must be covered by a qualified high deductible health plan (HDHP) during the last month of the individual’s tax year through the next 11 months.  For individuals who are no longer HSA eligible individuals, both the HSA contribution and catch up contribution apply pro rata based on the number of months of the year a taxpayer is an HSA eligible individual and penalties may apply.

·    Individuals who make contributions (including employer contributions) to a Health Savings Account will receive Form 5498-SA from their HSA trustee (financial institution) and if they received any distribution, Form 1099-SA will also be issued.

·      All individuals who have an HSA must file Form 8889 (Health Savings Accounts) as an attachment to their Form 1040 for any year in which they make or receive HSA contributions (including employer contributions) or for any year in which they take an HSA distribution.

·      Nonmedical withdrawals from your HSA are taxable income and subject to a 20% tax penalty as of January 1, 2011. 

For further information, please contact your tax advisor or visit the U.S. Treasury site at www.treas.gov/offices/public-affairs/hsa/.