What is the maximum contribution for individual health plans?
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$2,850, regardless of deductible.
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 2007 and contributed the maximum allowed.
Then in January 2008 you contributed the maximum
contribution for that tax year.
Scenario 1: You maintained coverage through
December 31, 2008. You are eligible for the
maximum contribution for both 2007 and 2008.
Scenario 2: You ended coverage April 1, 2008.
Eleven-twelfths of the December 2007 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.
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$2,900, regardless of deductible.
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 2008 and contributed the maximum allowed.
Then in January 2009 you contributed the maximum
contribution for that tax year.
Scenario 1: You maintained coverage through
December 31, 2009. You are eligible for the
maximum contribution for both 2008 and 2009.
Scenario 2: You ended coverage April 1, 2009.
Eleven-twelfths of the December 2008 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.
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What is the maximum contribution for family health
plans?
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$5,650, regardless of deductible.
See above for exceptions.
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$5,800, regardless of deductible.
See above for exceptions.
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Are contributions prorated by the number of months
the health plan is in place?
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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, 2007, you will be eligible to contribute the
maximum amount as determined by the IRS ($2,850 for
individual coverage and $5,650 for family coverage.)
Health Plan Status Change
If you have family coverage beginning January
1, 2007 and switch to single coverage July 1, 2007, you
will be eligible to contribute 6/12 of $5,650 plus 6/12
of $2,850 or $4,250.
HSA Qualified health plan terminated
You have a qualified family health plan January
1, 2007 and terminate coverage April 1, 2007.
You are eligible to contribute 3/12 of $5,650 or
$1,412.50.
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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, 2008, you will be eligible to contribute the
maximum amount as determined by the IRS ($2,900 for
individual coverage and $5,800 for family coverage.)
Health Plan Status Change
If you have family coverage beginning January
1, 2008 and switch to single coverage July 1, 2008, you
will be eligible to contribute 6/12 of $5,800 plus 6/12
of $2,900 or $4,350.
HSA Qualified health plan terminated
You have a qualified family health plan January
1, 2008 and terminate coverage April 1, 2008.
You are eligible to contribute 3/12 of $5,800 or
$1,450.
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Can I roll over unused funds from an FSA or HRA?
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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.
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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.
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Can I transfer funds from an IRA to my HSA?
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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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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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