Health Savings Account (HSA)
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment.
Any adult can contribute to an HSA if they:
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Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
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Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
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Are not enrolled in Medicare.
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Cannot be claimed as a dependent on someone else’s tax return.
Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.
We have brochures with more detailed information about Health Savings Accounts at all TelComm locations. Drop by and pick one up anytime!
HSA Changes for 2007
The IRS has released Revenue Procedure 2006-53, which contains cost of living adjustments for HSAs beginning in 2007.
Year |
Single Coverage HDHP |
Family Coverage HDHP |
| |
Minimum Deductible |
Maximum Out-of-Pocket |
Minimum Deductible |
Maximum Out-of-Pocket |
2006 |
$1,050 |
$5,250 |
$2,100 |
$10,500 |
2007 |
$1,100 |
$5,500 |
$2,200 |
$11,000 |
Tax Year |
Single Coverage Annual Limit (Monthly Limit) |
Family Coverage Annual Limit (Monthly Limit) |
Over 55 Catch-Up Contributions |
2006 |
$2,700 ($225.00) |
$5,450 ($454.17) |
$700 |
2007 |
$2,850 ($237.50) |
$5,650 ($470.83) |
$800 |
HSA Changes for 2008
The IRS has released Notice 2007-22, which contains 2008 cost of living adjustments for HSAs.
Year |
Single Coverage HDHP |
Family Coverage HDHP |
| |
Minimum Deductible |
Maximum Out-of-Pocket |
Minimum Deductible |
Maximum Out-of-Pocket |
2007 |
$1,100 |
$5,500 |
$2,200 |
$11,000 |
2008 |
$1,100 |
$5,600 |
$2,200 |
$11,200 |
Tax Year |
Single Coverage Annual Limit (Monthly Limit) |
Family Coverage Annual Limit (Monthly Limit) |
Over 55 Catch-Up Contributions |
2007 |
$2,850 ($237.50) |
$5,650 ($470.83) |
$800 ($66.67) |
2008 |
$2,900 ($241.67) |
$5,800 ($483.33) |
$900 ($75) |
|
