In a world of increasing costs, we know the importance of offering your employees an option to cover medical expenses. Health Savings Accounts (HSAs) allow your employees to set aside pre-tax money for medical expenses as allowed by the IRS. The IRS limits are:
Health Savings Account
|Annual Contribution Limit - Individual||$3,400||$3,450||$3,500|
|Annual Contribution Limit - Family||$6,750||$6,850*||$7,000|
|Annual Catch-Up Contribution (ages 55 to 65)||$1,000||$1,000||$1,000|
|Min Deductible - Individual||$1,300||$1,350||$1,350|
|Min Deductible - Family||$2,600||$2,700||$2,700|
|Max Out of Pocket - Individual||$6,550||$6,650||$6,750|
|Max Out of Pocket - Family||$13,100||$13,300||$13,500|
*On Monday, March 5, 2018, the IRS announced that the previously released maximum family contribution limit to a Health Savings Account (“HSA”) is reduced from $6,900 to $6,850 in 2018. This change applies immediately and any family contribution to an HSA in 2018 over $6,850 could be subject to taxes and penalties.
The HSA is owned by the employee and the money continues to be the employee’s year after year, unlike the FSA where the money must be used for service incurred during that year or the money is lost. For more information, please see our HSA Sell Sheet.
Paramount recommends the following banks for HSAs, based on their customer service, experience with HSAs and willingness to lower fees for our members.