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Health Savings Account Contribution Limits
IRS Requirements for
2010
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Single Plan
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Family Plan
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Minimum Deductible
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$1,200
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$2,400
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Maximum Out-of-Pocket
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$5,950
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$11,900
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Contribution Limit
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$3,050
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$6,150
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Catch-Up Contribution (55 or older)*
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$1000
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$1000
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* If a spouse is also 55 or older, a second
HSA may be established and a second catch-up contribution of $1000 may be made to
that account if desired.
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IRS Requirements for
2009
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Single Plan
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Family Plan
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Minimum Deductible
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$1,500
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$2,300
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Maximum Out-of-Pocket
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$5,800
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$11,600
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Contribution Limit
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$3,000
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$5,950
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Catch-Up Contribution (55 or older)*
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$1,000
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$1,000
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* If a spouse is also 55 or older, a second
HSA may be established and a second catch-up contribution of $1000 may be made
to that account if desired.
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HSA Exceptions
If an individual does not stay in the
HSA-eligible plan 12 months following the last month of the year of the first
year of eligibility, the amount which could not have been contributed will be
included in income and subject to a 10 percent additional tax.
Example:
You established a
qualified health plan in December 2009 and contributed the maximum allowed. Then
in January 2010 you contributed the maximum contribution for that tax year.
Scenario 1: You maintained coverage through December 31, 2010. You are
eligible for the maximum contribution for both 2009 and 2010.
Scenario 2: You ended coverage April 1, 2010. Eleven-twelfths of the
December 2009 contribution must be treated as income, plus a 10% penalty on that
amount must be paid. Nine-twelfths of the funds deposited in January must be
taken out of the account as an excess contribution (and treated as income) but
no 10% penalty is incurred.
Are contributions
prorated by the number of months the health plan is in place?
Pro-rating of contributions occurs when
the status of an HSA changes from family to single, or if the HSA qualified
health plan is terminated.
Examples:
Coverage Beginning Mid-year
If you have a new HDHP and coverage begins in July, 2010, you will be eligible
to contribute the maximum amount as determined by the IRS ($3,050 for individual
coverage and $6,150 for family coverage.)
Health Plan Status Change
If you have family coverage beginning January 1, 2010 and switch to single
coverage July 1, 2010, you will be eligible to contribute 6/12 of $6,150 plus
6/12 of $3,050 or $4,600.
HSA Qualified health plan terminated
You have a qualified family health plan January 1, 2010 and terminate coverage
April 1, 2010. You are eligible to contribute 3/12 of $6,150 or $1,537.50.
Can I roll over
unused funds from an FSA or HRA?
Yes, regulations now allow you
to roll over unused funds from an FSA or HRA on a one-time basis. Please talk to
your employer or third-party administrator for specific details. Can I transfer funds
from an IRA to my HSA?
Yes, regulations allow a
one-time rollover from an IRA to an HSA, up to the annual HSA contribution
maximum. Prior to transferring funds, please consult your tax advisor to discuss
the benefits and tax reporting requirements.
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