2010

2009

What is the maximum contribution for individual health plans?

$3,050, 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 2010 and contributed the maximum allowed.  Then in January 2011 you contributed the maximum contribution for that tax year.
Scenario 1:  You maintained coverage through December 31, 2011. You are eligible for the maximum contribution for both 2010 and 2011.
Scenario 2: You ended coverage April 1, 2011.  Eleven-twelfths of the December 2010 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.

$3,000, 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 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.

What is the maximum contribution for family health plans?

$6,150, regardless of deductible.

See above for exceptions.

$5,950, regardless of deductible.

See above for exceptions.

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.

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, 2009, you will be eligible to contribute the maximum amount as determined by the IRS ($3,000 for individual coverage and $5,950 for family coverage.)
Health Plan Status Change
If you have family coverage beginning January 1, 2009 and switch to single coverage July 1, 2009, you will be eligible to contribute 6/12 of $5,950 plus 6/12 of $3,000 or $4,475.
HSA Qualified health plan terminated
You have a qualified family health plan January 1, 2009 and terminate coverage  April 1, 2009.  You are eligible to contribute  3/12 of $5,950 or $1,487.50.

What is the catch-up contribution if I am 55 or older?

$1,000

$1,000

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.

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.

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.