Contributing To Your Health Savings Account  

You must enroll in an HDHP, high-deductible health plan, before you can make HSA contributions.   The maximum annual HSA contribution is the IRS contribution limit.  The contribution levels are indexed annually for inflation and are subject to change. 

2008 IRS Guidelines for Qualifying HDHP & Contributions

	Single	Family
Minimum Deductible	$1,150	$2,300
Maximum Out-of-Pocket Expenses	$5,800	$11,600
Contribution Maximum	$3,000*	$5,950*

*for individuals age 55 and older, an additional "catch up" contribution of $1,000 is allowed.
 

Need more information on contribution levels on Health Savings Accounts?  Go to www.treasury.gov

Key Points About Contributions

• Contributions cannot exceed the IRS Contribution Limit.
• If you became eligible during the year, you may contribute the IRS contribution limit.
• Anyone can make a contribution to your HSA.
• Your contributions are tax deductible.
• If your employer contributes to your HSA, that contribution is done on a pre-tax basis.

Key Points About Distributions 

• You can use your money tax-free at anytime for eligible medical expenses.
• When you turn 65, you can use the money for non-eligible medical expenses.  The money is subject to income tax, but not the 10% penalty.
• If you are under 65 and use your money for non-eligible medical expenses, you will be subject to income tax and a 10% tax penalty.