HSA Contributions
The best way to benefit from the unique tax advantages and savings opportunities associated with an HSA is to make the full, pre-tax or tax-deductible contribution each year.
HSA contributions can be made by individuals, employers, or both. The maximum allowable contribution is detemined by the U.S. Treasury Department and adjusted annually.
The following chart shows maximum HSA contributions, minimum HDHP deductibles, and maximum out-of-pocket expenses for the 2010 / 2011 tax year.
Starting in 2011 the excise penalty associated with withdrawing HSA funds for non-medical expenses is increased form 10% to 20%.
Effective January 1, 2011, Over the Counter Drugs (OTC) and medicines will require a prescription to be eligible as a tax-free benefit.
|
2010 / 2011 |
| Contribution Limit - Individual |
$3,050 |
|---|
| Contribution Limit - Family |
$6,150 |
|---|
|
Individual |
Family |
Minimum Annual Deductible
for 2010 |
$1,200 |
$2,400 |
|---|
Maximum Out-of-Pocket
Expenses for 2010* |
$5,950 |
$11,900 |
|---|
*includes deductibles, co-payments, etc., but not premiums.
Catch-up Contributions
Individuals age 55 and older, who are covered by an HDHP, can make an additional $1,000 catch-up contribution each year until he/she enrolls in Medicare.
How to Make an HSA Contribution
Frequently Asked Questions about HSA Contributions |
