SECTION 1. PURPOSE
This revenue procedure provides the 2012 inflation adjusted amounts for Health
Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code.
SECTION 2. 2012 INFLATION ADJUSTED ITEMS
Annual contribution limitation. For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,100. For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,250.
High deductible health plan. For calendar year 2012, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an
annual deductible that is not less than $1,200 (no change from calendar
year 2011) for self-only coverage or $2,400 (no change from calendar year 2011) for family coverage, and
the annual out-of pocket expenses (deductibles, co-payments, and other
amounts, but not premiums) do not exceed $6,050 for self-only coverage or $12,100 for family coverage.
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for calendar year 2012.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is Bill Ruane of the Office of
Associate Chief Counsel (Income Tax & Accounting). For further information regarding
§ 223 and HSAs, contact Leslie Paul at (202) 622-6080 (not a toll free call). For further
information regarding the calculation of the inflation adjustments in this revenue
procedure, contact Mr. Ruane at (202) 622-4920 (not a toll free call).
In addition, a fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.*
Revenue Procedure 2011-32 is attached.
Last Updated by the U.S. Treasury Department: August 3, 2011
Advantages of HSAs
Security – Your high deductible insurance and HSA
protect you against high or unexpected medical bills.
Affordability – You should be able to lower your
health insurance premiums by switching to health
insurance coverage with a higher deductible.
Flexibility – You can use the funds in your account to
pay for current medical expenses, including expenses
that your insurance may not cover, or save the money in
your account for future needs, such as:
• Health insurance or medical expenses if unemployed
• Medical expenses after retirement (before Medicare)
• Out-of-pocket expenses when covered by Medicare
• Long-term care expenses and insurance
Savings – You can save the money in your account for
future medical expenses and grow your account through
Control – You make all the decisions about:
• How much money to put into the account
• Whether to save the account for future expenses or
pay current medical expenses
• Which medical expenses to pay from the account
• Which company will hold the account
• Whether to invest any of the money in the account
• Which investments to make
Portability – Accounts are completely portable,
meaning you can keep your HSA even if you:
• Change jobs
• Change your medical coverage
• Become unemployed
• Move to another state
• Change your marital status
Ownership – Funds remain in the account from year to
year, just like an IRA. There are no “use it or lose it” rules
Tax Savings – An HSA provides you triple tax savings:
(1) tax deductions when you contribute to your account;
(2) tax-free earnings through investment; and,
(3) tax-free withdrawals for qualified medical expenses.*
Opening Your Health Savings Account
Banks, credit unions, insurance companies and other
financial institutions are permitted to be trustees or
custodians of these accounts. Other financial
institutions that handle IRAs or Archer MSAs are also
automatically qualified to establish HSAs.*
Need More Information about HSAs?
Treasury’s web site has additional information about
Health Savings Accounts, including answers to
frequently asked questions, related IRS forms and
publications, technical guidance, and links to other
helpful web sites. Treasury’s HSA website can be
found through www.treas.gov (click on “Health Savings
Accounts”) or directly at the following address:
* = courtesy of the U.S. Treasury Department website.