It’s never too early to look ahead to next year. With that in mind, I wanted to highlight the 2013 HSA contribution limits. As many of you know, we’ve been using our health savings account as an additional retirement investment vehicle. That is, we’ve been contributing to it and saving up the documentation related to our medical expenses, but not withdrawing the funds.
The only drawback has been that my employer’s HSA custodian has horrible investment options, so I’ve been waiting for the money to reach a critical mass before transferring it to another custodian for investing. The good news is that my employer is switching custodians on July 1, so hopefully the investment options will be better (they can’t be worse!) and I won’t have to deal with transferring it myself.
Anyway… Back to the issue of contribution limits. In 2012, individuals can contribute $3,100 and families can contribute $6,250. In 2013, those limits will increase to $3,250 and $6,450 — so individuals will be able to stash an extra $150 and families will be able to stash an extra $200.
As a reminder, you can only contribute to an HSA if you have a high-deductible health plan. The current definition of “high deductible” (which will remain unchanged in 2013) is $1,200 for an individual and $2,400 for a family.
I can’t speak for anyone else, but we’ve come out way ahead by switching to an HDHP (plus HSA) from a more traditional PPO plan. What about you? Do you have an HDHP? If so, are you happy with it vs. the alternatives?
Hat tip to The Finance Buff for digging up the limits.