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HOW DO I CONTRIBUTE?
Contributions are:
- Tax-deductible for the accountholder.
- Owned by the accountholder and remain theirs until the funds are used.
- Able to be made at any point during the contribution year, up to the individual’s tax deadline (usually April 15th, just like IRAs)
- Contribution limits for 2008 are $2,900 individual and $5,800 family. Catch-up contributions for those 55 and older are $900 (2008 figures).
*Catch-up contributions for those 55 and older are $800 for 2007 and $900 for 2008.
Who Can Contribute?
Employers and employees can contribute to HSA accounts as long as the account holder meets the requirements for HSA eligibility. Family members or any other person may also make contributions on behalf of an eligible individual.
Tax Advantages
Health Savings Accounts create unique tax benefits for account holders/individuals.
- Contributions are 100% tax-deductible
- Funds grow on a tax-deferred basis, and if the funds are used for an eligible medical expense, the funds are tax-free.
- Funds rollover from year to year, and funds used after age 65 are able to be used tax-free for eligible medical expenses or at your normal tax rate for any other reason.
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