2009 Health Savings Account (HSA Medical Insurance) Contribution Limits and More Related News

2009 Health Savings Account Plans: Would you like to save significant amounts of money on taxes, health insurance premiums, & retirement savings all at the same time? This can be accomplished without truly decreasing your insurance protection or choices of doctors. Most people find these things quite attractive, but still desire to understand HSAs more clearly before switching over their traditional health insurance plans to an HSA plan.

But I digress. This article announces the new 2009 annual contribution levels for Health Savings Accounts:

• For 2009, the maximum annual HSA contributions for an eligible individual with self-only coverage is $3,000.

• For family health coverage, the maximum annual HSA contributions is $5,950.

• Catch up contribution for individuals who are 55 years or older has been increased by law to $1,000 for 2009 & all years thereafter.

• Individuals who are eligible (meaning they have an HSA qualified high deductible insurance plan or HDHP) on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contributions, if 55 years of age or older by year end), regardless of the number of months the individual was eligible during the year. For individuals who are no longer eligible on that date, both the maximum HSA contributions and catch up contribution are pro-rated based on the number of months of the year that the taxpayer was eligible.

New Amounts for out-of-pocket spending on HSA-Compatible (HDHP)high deductible health insurance plans:

• For 2009, the maximum annual out-of-pocket amounts for HDHP self-coverage increases to $5,800 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,600.

Minimum Deductible Amounts for HSA-Compatible HDHPs:

• For 2009, the minimum deductible for HDHPs increases to $1,150 for self-only coverage and $2,300 for family coverage.

Additionally, a fiscal year plan that satisfies the requirements for a high deductible health insurance plan on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.