May 12, 2007
IRS Release 2008 Limits for HSAs
On May 12, 2007, the IRS released cost-of-living adjusted HSA amounts applicable for 2008. The amounts for 2008 are as follows:
- Minimum deductibles for the high deductible health plan’s (HDHP) policy or plan year beginning in 2008 are $1,100 for self-only coverage and $2,200 for family coverage.
Note : These have not changed from 2007.
- Maximum out-of-pocket limits for the HDHP’s policy or plan year beginning in 2008 are $5,600 for single coverage and $11,200 for family coverage.
- Annual HSA contribution limits are $2,900 for individuals with single coverage and $5,800 for individuals with family coverage.
These numbers for 2008 were released much earlier than the numbers for 2007. Under the HSA legislation passed in late 2006, the IRS is required to release the adjusted amounts each year prior to June 1st. This provides employers sponsoring, or planning to adopt, HDHPs more time to make decisions regarding plan design for the next policy or plan year.
We understand the IRS is in the final stages of releasing additional HSA guidance addressing a number of miscellaneous issues. We will be releasing an alert regarding that guidance after it is released. In the meantime, if you have any questions regarding the adjusted HSA amounts or HSAs in general, please do not hesitate to contact us.