IRS raises health savings account limits for 2016

The Internal Revenue Service raised the maximum allowable contribution to a health savings account (HSA) by $100 for 2016. Beginning in January, the annual limit on deductions for an individual with self coverage in a health-deductible plan will be $3,350, while an individual with family coverage will come in at $6,750. Additionally, come 2016, a health-deductible plan will be defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage. The maximum HSA contribution for individuals rose $50 last year, noted Benefits Pro. Announcement (.pdf)