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2008 HSA Contribution Limits

The IRS recently issued guidance outlining the maximum annual contributions for health savings accounts (HSAs) for calendar years 2007 and 2008 [Rev. Proc. 2007-36].

Previously, the maximum contribution was calculated as the lesser of the deductible of the accompanying high deductible health plan or the indexed statutory amount. However, the Health Opportunity Patient Empowerment Act of 2006 specified that the maximum annual contribution is the indexed statutory amount for taxable years beginning after December 31, 2006 .

The annual contribution limit on deductions is as follows:

• Calendar year 2007: $2,850 for an individual with self-only coverage under a high deductible health plan and $5,650 for an individual with family coverage.
• Calendar year 2008: $2,900 for an individual with self-only coverage under a high deductible health plan and $5,800 for an individual with family coverage.

For calendar year 2008, a "high deductible health plan" is one that has:

• An annual deductible of at least $1,100 for self-only coverage or $2,200 for family coverage, and
• Annual out-of-pocket expenses up to $5,600 for self-only coverage or $11,200 for family coverage.

 

	2007	2008
Contribution Limit - Individual	$2,850	$2,900
Contribution Limit - Family	$5,650	$5,800

 

	Minimum Annual Deductible for 2008	Maximum Out-of-Pocket Expenses for 2008*
Individual	$1,100	$5,600
Family	$2,200	$11,200

*: includes deductibles, co-payments, etc., but not premiums.

Catch-up Contributions

Individuals age 55 and older, who are covered by an HDHP, can make additional catch-up contributions each year until he/she enrolls in Medicare. The additional catch-up contributions allowed are as follows:

Year	Amount
2008	$900
2007	$800