Health Savings Accounts Contributions

Health Savings Accounts with HSA Administrators

How Contributions Work

2008 Calendar Year Maximum

Single accounts—$2900.00
Family accounts—$5800.00
Additional contribution for account holders who attain age 55 by December 31, 2008—$900.00

2009 Calendar Year Maximum

Single accounts—$3,000.00
Family accounts—$5,950.00
Additional contribution for account holders who attain age 55 by December 31, 2009 —$1,000.00

It's not too late to make 2007 contributions. You have until April 15 to finalize your prior year's contribution.

There are specific IRS guidelines for HSA contributions. Note- the rules changed for 2007:

Your tax-deductible contribution to your HSA will change each year based on the statutory limits set by the IRS. The maximum contribution amount is the statutory maximum for either the single or family coverage, whichever is applicable. The HSA contribution limit no longer refers to the individual’s HDHP deductible amount.
If you become eligible for an HSA anytime on or before December 1 of any year you can contribute as if you were eligible for the entire year. This is true as long as you continue to be covered by a qualified high deductible health plan (HDHP) for 12 full months beginning with December of the year in which you became eligible for an HSA. This 12-month period is known as the “testing period.” If you are not covered by a qualified HDHP during the testing period, all contributions attributable to months (in the preceding tax year) for which you were not an eligible individual are included in gross income for the year in which you cease to be an eligible individual. For example, if you change employers during the 12-month period you must elect COBRA or elect coverage under another HDHP to avoid the adverse tax consequences.
If you do not satisfy the testing period described above, your maximum contribution, and your catch-up contribution, is pro-rated based on the number of months during the calendar year that your insurance is in effect. For example, if your insurance becomes effective on April 1, you only have 9 months of coverage during the calendar year. Therefore, your maximum deductible contribution to your HSA plan is 9/12ths of the annual allowable deductible. Conversely, if you terminate your insurance prior to calendar year-end, the same pro-rata formula will apply.

You or your employer can make contributions. If your employer contributes, that amount must be shown on your W-2, and you then claim the full deduction on your tax return.

Send contributions, questions or comments to:

Health Savings Administrators
10800 Midlothian Turnpike
Suite 240
Richmond, VA 23235
info@hsaadministrators.com
888-354-0697

Please make checks payable to Fulton Bank