IRS Releases 2011 Deduction Limits for HSAs

The Treasury and IRS have released the 2011 inflation-adjusted amounts for health savings accounts under Code Sec. 223(g). After the application of cost-of-living adjustment rules under Code Sec. 223(g), there is no change in the amounts from 2010. Therefore, for calendar year 2011, the annual limitation on deductions under Code Sec. 223(b)(2) for an individual with self-only coverage under a high-deductible plan remains $3,050 ($6,150 for an individual with family coverage).

A "high-deductible health plan" is defined under Code Sec. 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 for self-only coverage or $2,400 for family coverage and annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) that do not exceed $5,950 for self-only coverage or $11,900 for family coverage.

Source: Rev. Proc. 2010-22, I.R.B. 2010-23