2014 FSA and HSA Contribution Levels

The upcoming new year means new limits for Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs) accounts.

HSA Contribution Limits for 2014

Age 54 and under Age 55 and above
Self-only Coverage $3,300 $4,300
Family Coverage $6,550 $7,550

The IRS allows for an extra $1,000 catch-up contribution during the year you turn 55. So, if your 55th birthday is in the 2014 calendar year, you are eligible for the extra contribution.

For those using Tango to manage their HSA, your 2014 annual contribution limit will be updated based on your insurance coverage, as reported by your employer, and age. Also, if you or your spouse contribute to another HSA this year, you should enter those contributions n Tango’s limit calculator to avoid exceeding your IRS maximum. Learn more about how spouses should handle HSAs here.

HDHP Minimum and Maximum Limits for 2014

Minimum Deductible Maximum Out-of-Pocket
Self-only Coverage $1,250 $6,350
Family Coverage $2,500 $12,700

To learn more about how to use your HSA, check out our HSA 101 page or the handy quiz we created to help you determine how much you should contribute.

FSA Contribution Limits for 2014

Below are the IRS guidelines of FSA contribution limits, but your employer may restrict these based on their plan design.

Minimum Maximum
FSA (including limited) $25 $2,500
Dependent Care $25 $5,000

Your employer may also decide to utilize the new Carryover period in lieu of a Grace Period this year.  This option allows you to carry up to $500 of your remaining 2013 balance into 2014. This only affects your Health FSA and does not apply to Limited or Dependent Care FSAs.

24 thoughts on “2014 FSA and HSA Contribution Levels

  1. Mat I contribute 1,500 and my spouse contribute $1,500 for the FSA. We work at different places. We have no carryover.

    • Hi Melanie,

      I assume that you are asking if you can each contribute $1,500 to your own individual FSAs and in that case, the answer is yes. There is a personal limit of $2,500 on each FSA but you are not held to that limit together – only as an individual. If both of your companies offer the FSA as an option then you both have the ability to open and fund your individual FSAs to the 2014 max of $2,500.

      Let me know if you still have questions.

      Paige

  2. I am wondering who do we write to see about having the limit raised to a more reasonable amount. $2499.00 does not come close to covering the two of us for the year. I am disabled and can’t work so we are dependent on just his income.

    • Hi Cindy,

      I understand your frustration and I’m sorry. The limits for the FSA and HSA are determined by the IRS so if you wanted to talk to anyone, you would need to contact the IRS directly. Here is their information:

      Telephone Assistance for Individuals:
      Toll-Free, 1-800-829-1040
      Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

      Paige

  3. My company contributes $1,000 to my FSA. Does that mean I can only deduct $1,500 from my own paycheck, or do I get to deduct a full $2,500 of my own funds as well as the company contribution?

    • Hi Greg,

      Here is what I found in an IRS Publication regarding this topic:

      “As noted, the $2,500 limit applies only to salary reduction contributions and not to employer non-elective contributions, sometimes called flex credits. Generally, an employer may make flex credits available to an employee who is eligible to participate in the cafeteria plan, to be used (at the employee’s election) only for one or more qualified benefits. For further information on flex credits, see Prop. Treas. Reg. § 1.125-5(B). For example, if an employer contributes a $500 flex credit to each employee’s health FSA for the 2013 plan year, each employee may still elect to make salary reduction contributions of $2,500 (as indexed for inflation) to a health FSA for that plan year. However, if an employer provides flex credits that employees may elect to receive as cash or as a taxable benefit, those flex credits are treated as salary reduction contributions for purposes of § 125(i).”

      Here is the link to the rest of the publication: http://www.irs.gov/irb/2012-26_IRB/ar09.html

      Reading that, it makes me thing it does not affect your personal contribution limit for the FSA, however that is all the information I have and it is important to follow up with your employer or HR department going forward to see how your plan is laid out. I hope that helps!

      Paige

  4. can i be in both a FSA and HSA? Assuming I am in a HDHP. My annual deductible is $1,500.
    Currently I am in a FSA.

    • Hi Ken,

      Unfortunately you cannot have both an FSA and HSA at the same time per IRS rules. If you still have funds in your HSA then you can still spend those down until it is depleted while you have your FSA but you cannot contribute any further to the HSA once your FSA starts.

      I hope that helps!

      Paige

    • If the question was in fact whether or not they can have a limited purpose FSA and an HSA at the same time then the answer would be yes. However, since they did not specify, I wanted to err on the safe side with that one. But you are correct about being able to have both an HSA and limited purpose FSA together.

      Thanks.

  5. I agree with Cindy, the maximum needs to be adjusted. It should allow for up to a families OOP total. I have $3000 DED and $6000 OOP max, which are concurrent. My company has a HIA of $1500, so in the end I am responsible for $4500 but can only put aside $2500 as my wife does not work. Definitely need to contact the IRS on this.

  6. Can your have an FSA, and have the max, $2500, and your spouse, working at different company which offers HSA, elect the max as well $6550?
    than you

    • Hi Humberto,

      Unfortunately, no you cannot have both an FSA and HSA in the same family. Here is what the IRS Publication 969 has to say about the HSA eligibility in regards to other types of coverage:

      “An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. Health FSAs and HRAs are discussed later.

      However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements.

      Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible.

      Suspended HRA. Before the beginning of an HRA coverage period, you can elect to suspend the HRA. The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. When the suspension period ends, you are no longer eligible to make contributions to an HSA.

      Post-deductible health FSA or HRA. These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met.

      Retirement HRA. This arrangement pays or reimburses only those medical expenses incurred after retirement. After retirement you are no longer eligible to make contributions to an HSA.”

      So unless the FSA is one of the ones mentioned above, which is sounds like it is not, you cannot have both accounts at the same time. You can always use your FSA or HSA funds on your spouse which is why you would be considered to be covered under each others FSA/HSA.

      Here is the link to the rest of the Publication 969: http://www.irs.gov/publications/p969/ar02.html#en_US_2013_publink1000204039

      Let me know if you have further questions!

      Paige

  7. Thanks Paige,
    I am a little confuse, perhaps a little more info will help.
    My wife has been working at her company since before we marry, and they have the HDHP helt plan, with an HSA. up until now she has been contributing $2800. Me, working under different employee with a regular health insurance plan, have an FSA, which I am contributing the $2500. We have not make any changes to these plans since we got marry last year. This year we are having some big expense, (She) and were thinking in increasing her HSA, to the $6550, but again not sure if that is possible.
    should we cancel my FSA at my company and just use her HSA? Does it matter that we have two different health insurances?
    Thanks for the help.

    Humberto

    • Hi Humberto.

      If you are covered under your PPO (regular insurance plan) and your wife is NOT covered under that plan with you, she is still eligible to make contributions to her HSA, as long as you do not have an FSA. A family unit cannot have both an FSA and an HSA at the same time so you must choose one or the other. Additionally, if your wife is covered under your regular insurance plan (the PPO) then she is not eligible for the HSA as she must only be covered under an HDHP to be eligible for the HSA.

      If you are able to cancel your FSA then she can contribute to her HSA as normal but if not then she will need to cease making contributions since you cannot have both accounts together.

      Here is another excerpt from the IRS Publication 969:

      “You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan.”

      So again, as long as she is not covered under your PPO plan and there is no FSA, she is eligible for the HSA.

      Paige

  8. Hi,

    If my husband and I both have $2500 each (total $5000) in FSA – can we do the following:

    1. Can we use the entire $5000 for my (one person’s) healthcare costs?
    2. Or we have to use our individual amounts for our individual health care costs?

    Thanks!

    • Hi,

      Thanks for contacting us. You can use your FSA on your spouse so there should be no issue with that. Here is an excerpt from the IRS Publication 969 regarding the FSA and eligible expenses:

      “Qualified medical expenses are those incurred by the following persons.
      -You and your spouse.
      -All dependents you claim on your tax return.
      -Any person you could have claimed as a dependent on your return except that:
      -The person filed a joint return,
      -The person had gross income of $3,900 or more, or
      -You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2013 return.
      -Your child under age 27 at the end of your tax year.”

      Considering this, there should be no issue using all of the funds on person since you are eligible to use your funds on your spouse.

      Paige

  9. If work for company A in the begaining of a year and contribute $2500 to a FSA account and mid year leave the company to work for company B can I put in an additional $2500 in an FSA account? Will the amount I contribute to company B be considered to be over the irs contribution maximum?

    • Hello Maria,

      It is my understanding that if you leave your company mid-year then you are eligible for an additional $2,500 at the new company as well, even if you have already contributed to another FSA at the previous company.

      Paige

  10. If I take the maximum amount ($6550) for my HSA, can my wife also get the limited purpose FSA for $2500 (daughter in braces), totaling $9050 in total? I am wondering if these are separate limits of if the $6550 is the limit for both?

    • Hello Mike,

      The IRS states that you cannot have both an HSA and an FSA together within the same family. However, there are a few types of FSAs that you can have with an HSA and these are called “limited-purpose FSAs.” If the FSA is a limited-purpose dental, dependent care, childcare, vision or another type of account that can only be used for specific expenses and not for general medical purposes, then you are allowed to have that with your HSA.

      It sounds like you would be enrolling in a limited-purpose dental FSA if it is for braces, but I would make sure before you do.

      Let me know if you have further questions!

      Paige

  11. Hi,

    I have a family of 4 I pay $5,688 a year in medical premiums out of my pocket. Can I take the entire amount of $5,688 contributing to my FSA?

    • Hi Christina,

      I am assuming that you are asking whether or not you can contribute $5,688 into an FSA to cover your medical premiums. Unfortunately, the limit for the FSA contributions is far below that, at $2,500. You also cannot use an FSA to pay for premiums through your employer.

      Let me know if that did not answer your question.

      Paige

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