|On November 19, 2004, the Internal Revenue Service (IRS) issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjuction with HSAs.
According to Revenue Procedure 2004-71, the maximum annual out-of-pocket amount in 2005 for HDHP self-coverage will rise to $5,100 (was $5,000 in 2004) and the maximum annual out-of-pocket amount for HDHP family coverage will increase to $10,200 (was $10,000 in 2004). The required minimum deductible for a HDHP will remain at $1,000 for self-only coverage and $2,000 for family coverage.
For 2005, the maximum annual HSA contribution for an eligible individual with self-only coverage is $2,650 (was $2,600 in 2004). For family coverage the maximum annual contribution is $5,250 (up from $5,150 in 2004).
You may view the IRS Revenue Procedure by going to our Official Resources section on our Web site.
The Treasury press release on HSA-related adjustments can be found at: www.treas.gov/press/releases/js2112.htm