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.