November 19, 2004
BB 04—118

Treasury Releases 2005 HSA Numbers

The U.S. Treasury Department issued a press release on November 19 announcing the new indexed limits for Health Savings Accounts (HSAs) and high deductible health plans (HDHPs), which must be offered in conjunction with the accounts. The limits are included in Revenue Procedure 2004-71, which includes indexed amounts for several federal income tax purposes.

The following amounts will be in effect for 2005:

  • Annual HSA contribution limit: $2650 for individual coverage, $5250 for family coverage
  • Catch-up contribution limit over age 55: $600
  • Maximum HDHP out-of-pocket limit: $5,100 for individual coverage, $10,200 for family coverage
  • HDHP minimum deductible (unchanged from 2004): $1,000 for individual coverage, $2,000 for family coverage

Treasury has also added a link to the Tax Savings from HSA Contributions Made in 2005 to their HSA homepage. For more information, contact Susan Relland, Council health policy legal counsel, at (202) 289-6700.

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The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council's members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.