As temperatures soar, the risk of heat-related illness increases. These illnesses are caused when the body’s cooling mechanisms (i.e., sweating, radiating heat, etc.) cannot lower the body’s core temperature, usually […]
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A health savings account (HSA) is an employer- established benefit often offered in conjunction with employer-provided health plans. The plans are designed to help offset the costs of high-deductible health plans (HDHP). In order to enroll in a HSA, you must also be part of a HDHP that meets the minimum deductible and out-of-pocket limits.
In May, the IRS issued Revenue Procedure 2021-25. The procedure adjusted the amounts that individuals can contribute annually to their HSAs. The adjusted amounts are meant to reflect inflation and any cost-of-living increases. The self-only HSA contribution amount was raised by $50 and the family HSA amount was raised by $100. Please consult the following table for specific amounts.
HDHP minimum deductibles remain unchanged from 2021 for self-only and family plans. Maximum out-of-pocket amounts for HDHP increased by $50 for self-only and by $100 for family plans.
If you are or will be 55 or older by the end of the year, you may add an additional $1,000 to your HSA. This catch-up contribution is available to individual account holders. Because there are no joint HSA accounts, the account holder must be over 55 by the end of the year to make the extra contribution, even for family HSA accounts. If you and your spouse are both over 55, then you must have two separate HSA accounts in order for both of you to contribute the extra $1,000.
The IRS defines dependents eligible for HSA coverage as follows:
Note that the age of student dependents is different for HSAs than it is for insurance coverage under the Affordable Care Act (up to 26 years of age). Funds from a HSA cannot be used on dependents over the age of 24.
Employers should evaluate their HDHPs and HSAs to ensure that they meet the new federal guidelines. For more information about these types of plans, please contact CTSI at 303 861 0507.
A PDF of this Technical Update is available here.
As temperatures soar, the risk of heat-related illness increases. These illnesses are caused when the body’s cooling mechanisms (i.e., sweating, radiating heat, etc.) cannot lower the body’s core temperature, usually […]
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For over 30 years, CTSI and your pools have successfully navigated each year’s challenges and consistently provided comprehensive services to pool members. In an effort to protect all members and […]
