The good news is that the annual ceiling on deductible contributions to Health Savings Accounts (HSA) will rise next year. The top goes to $6,650 for account owners with family coverage and to $3,350 for those with individual coverage; those born before 1961 can add another $1,000. The limits on out-of-pocket costs, including deductibles and co-pays, rise to $12,900 on family plans and $6,450 for individuals. Minimum policy deductibles move up to $1,300 for singles, $2,600 for families.
The bad news is that people with pre-tax Flexible Spending Accounts (FSA) often used for medical expenses cannot also contribute to HSAs, even if all they have is the carryover of up to $500 from last year. That makes it extra-important for plan participants to use up whatever funds are left in the FSA before the end of this year. Those with leftover FSA funds cannot contribute to a HSA even after the FSA balance is used up.