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Is my money safe?
How do the tax savings work?
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| How
much can I contribute to my HSA? |
Maximum yearly contributions (and associated tax deduction) are determined as follows:
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For
individuals, it is the lesser of:
a) $2,600
b) Your health plan's annual deductible*
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For
families, it is the lesser of:
a) $5,150
b) Your health plan's annual deductible*
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You do not have to contribute the maximum each year, although some HSAs require a small
minimum monthly deposit. |
Note: If you are between the ages of 55 and 65, you can make an additional annual
"catch up" contribution (of up to $500 in 2004.) |
*If you enroll in an HSA-eligible health plan in the middle of the calendar year, your
maximum contribution for the first year will be prorated based on the number of months you
have the HSA-eligible health plan. For example, if your individual health plan's annual
deductible is $3600, and you enroll in the HSA-eligible plan on June 1st, then your
maximum contribution for the first year can be up to $2100 (i.e. 7/12 of $3600). If you
are enrolled for all twelve calendar months, then you can contribute the amount of the
deductible up to the annual maximum allowed ($2600 in Year 2004). |
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