Due to a change made by the Tax Relief and Health Care Act of 2006, the IRS must release its cost-of-living adjustments to health care savings accounts (HSAs) and high-deductible health plans (HDHPs) limits by June 1 prior to the calendar year in which such adjustments become effective.  The IRS recently issued Revenue Procedure 2008-29, which announced the 2009 cost-of-living adjustments to various HSA limits.  Employers should inform employees participating in HSAs and HDHPs of these increases. 

The 2009 increases include the following:

• Annual HSA contribution limits:  $3,000 for self-only HDHP coverage and $5,950 for family HDHP coverage.
• HSA catch-up contribution limit (applicable to individuals who are 55 or older):  $1,000.
• HSA required minimum annual HDHP deductible:  $1,150 for self-only HDHP coverage and $2,300 for family HDHP coverage.
• Maximum HDHP out-of-pocket expense:  Limited to $5,800 for self-only HDHP coverage and $11,600 for family HDHP coverage.