How much can I contribute to my HSA each year?
I have a very high deductible, is there a limit on how much I can contribute?
Do my HSA contributions have to be made in equal amounts each month?
Does my contribution depend on when I establish my HSA account or when my HDHP coverage begins?
Can my employer contribute to my HSA?
Do my contributions provide any tax benefits?
If my employer contributes to my HSA, does that also provide me any tax benefit?
Can I make contributions through my employer on a "pre-tax" basis?
I turned 55 this year. Can I make the full "catch-up" contribution?
If both spouses are 55 and older, can both spouses make "catch-up" contributions?
Does tax filing status (joint vs. separate) affect my contribution?
May a self-employed person contribute to an HSA on a pre-tax basis?
How much can I contribute to my HSA each year?
For 2007 and forward, your maximum annual HSA contribution is based on
the statutory limit for your type of coverage. For 2007, if you have self-only
HDHP coverage, your contribution is $2,850; $5,650 if family HDHP, no
matter what your HDHP deductible is. Before 2006, the contribution could
not exceed the deductible of your HDHP. If you are age 55 or older, you
can also make additional “catch-up” contributions (see below).
I have a very
high deductible, is there a limit on how much I can contribute?
The most you can put into your account for 2007 is $2,850 if you have
single coverage and $5,650. These amounts will be increased for inflation
in future years.
Do my HSA contributions have to
be made in equal amounts each month?
No, you can contribute in a lump sum or in any amounts or frequency you
wish. However, your account trustee/custodian (bank, credit union, insurer,
etc.) can impose minimum deposit and balance requirements.
Does
my contribution depend on when I establish my HSA account or when my HDHP
coverage begins?
Your eligibility to contribute to an HSA is determined by the effective
date of your HDHP coverage. Your annual contribution depends your HDHP
coverage. If you are not covered on December 1, your contribution depends
on the number of months of HDHP coverage you have during the year (technically,
the months where you have HDHP coverage on the first day of the month).
For 2007 and forward, if you are covered on December 1, you are treated
as an eligible individual for the entire year. However – if you
cease to be an eligible individual during 2008, the excess over the pro
rated contribution is included in income and subject to a 10 percent additional
tax. The amount you can contribute is not determined by the date you establish
your account. However, medical expenses incurred before the date your
HSA is established cannot be reimbursed from the account.
Can my employer contribute to my
HSA?
Contributions to HSAs can be made by you, your employer, or both. All
contributions are aggregated to determine whether you have contributed
the maximum allowed. If your employer contributes some of the money, you
can make up the difference.
Do my contributions
provide any tax benefits?
Your personal contributions offer you an “above-the-line”
deduction. An "above-the-line" deduction allows you to reduce your taxable
income by the amount you contribute to your HSA. You do not have to itemize
your deductions to benefit. Contributions can also be made to your HSA
by others (e.g., relatives). However, you receive the benefit of the tax
deduction.
If my employer
contributes to my HSA, does that also provide me any tax benefit?
If your employer makes a contribution to your HSA, the contribution is
not taxable to you the employee (excluded from income).
Can I make contributions
through my employer on a “pre-tax” basis?
If your employer offers a “salary reduction” plan (also known
as a “Section 125 plan” or “cafeteria plan”),
you (the employee) can make contributions to your HSA on a pre-tax basis
(i.e., before income taxes and FICA taxes). If you can do so, you cannot
also take the “above-the-line” deduction on your personal
income taxes.
Can I claim both the “above-the-line”
deduction for an HSA and the itemized deduction for medical expenses?
You may be able to claim the medical expense deduction even if you contribute
to an HSA. However, you cannot include any contribution to the HSA or
any distribution from the HSA, including distributions taken for non-medical
expenses, in the calculation for claiming the itemized deduction for medical
expenses.
I’m over 55 and would like
to make catch-up contributions to my HSA, like I’ve done with my
IRA. Is that possible?
Yes, individuals 55 and older who are covered by an HDHP can make additional
catch-up contributions each year until they enroll in Medicare. The additional
“catch-up” contributions to HSA allowed are as follows:
2006 - $700
2007 - $800
2008 - $900
2009 and after - $1,000
I turned 55 this year. Can I make
the full “catch-up” contribution?
If you had HDHP coverage for the full year, you can make the full catch-up
contribution regardless of when your 55th birthday falls during the year.
If you did not have HDHP coverage for the full year, you must pro-rate
your “catch-up” contribution for the number of full months
you were “eligible”, i.e., had HDHP coverage. However, if
you are covered on December 1, you are treated as an eligible individual
for the entire year and get the full contribution.
If both spouses are 55 and older,
can both spouses make “catch-up” contributions?
Yes, if both spouses are eligible individuals and both spouses have established
an HSA in their name. If only one spouse has an HSA in their name, only
that spouse can make a “catch-up” contribution.
If each spouse
has self-only HDHP coverage (neither spouse has family coverage), how
much can we contribute?
For 2007 and forward, each spouse is eligible to contribute to an HSA
in their own name, up to the statutory limit ($2,850 for 2007). (The catch
up contributions are in addition to these limits.)
If both spouses
have family HDHP coverage but one spouse has other coverage, are both
spouses eligible for an HSA? How much can each spouse contribute?
The following examples describe how much can be contributed under varying
circumstances. Assume that neither spouse qualifies for “catch-up
contributions”.
Example 1: Husband and wife have family HDHP coverage with a $5,000 deductible. Husband has no other coverage. Wife also has self-only coverage with a $200 deductible. Wife, who has coverage under a low-deductible plan, is not eligible and cannot contribute to an HSA. Husband may contribute $5,650 to an HSA.
Example 2: Husband and wife have family HDHP coverage with a $5,000 deductible. Husband has no other coverage. Wife also has self-only HDHP coverage with a $2,200 deductible. Both husband and wife are eligible individuals. Husband and wife are treated as having only family coverage. The combined HSA contribution by husband and wife cannot exceed $5,650, to be divided between them by agreement.
Example 3: Husband and wife have family HDHP coverage with a $5,000 deductible. Husband has no other coverage. Wife also has family HDHP coverage with a $3,000 deductible. Both husband and wife are eligible individuals. The maximum combined HSA contribution by husband and wife is $5,650, to be divided between them by agreement.
Example 4: Husband and wife have family HDHP coverage with a $5,000 deductible. Husband has no other coverage. Wife also has family coverage with a $200 deductible. Husband and wife are treated as having family coverage with the lowest annual deductible ($200). Neither husband nor wife is an eligible individual and neither may contribute to an HSA.
Example 5: Husband and wife have family HDHP coverage with a $5,000 deductible. Husband has no other coverage. Wife also is enrolled in Medicare. Wife is not an eligible individual and cannot contribute to an HSA. Husband may contribute $5,650 to an HSA
Does tax filing
status (joint vs. separate) affect my contribution?
Tax filing status does not affect your contribution.
I’m a single
parent with HDHP coverage but have child/relative that can be claimed
as a dependent for tax purposes, and this dependent also has non-HDHP
coverage. Am I still eligible for an HSA?
Yes, you are still eligible for an HSA. Your dependent’s non-HDHP
coverage does not affect your eligibility, even if they are covered by
your HDHP. You can contribute up to the statutory limit ($5,650) to your
HSA.
May a self-employed
person contribute to an HSA on a pre-tax basis?
No. Self-employed persons may not contribute to an HSA on a pre-tax basis
and may not take the amount of their HSA contribution as a deduction for
SECA purposes. However, they may contribute to an HSA with after-tax dollars
and take the above-the-line deduction.
Source: http://www.treas.gov/offices/public-affairs/hsa/faq_contributing.shtml