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Guidelines for HSA Contributions
 Once you have established qualifying health insurance coverage, you will then be eligible to setup and make contributions into your HSA. These contributions can be made as a lump sum on a monthly basis, or any other interval. This unique feature is especially attractive to businesses with seasonal income. Both the HDHP and HSA have to be established prior to the occurrence of an eligible expense in order to withdraw funds from the HSA tax-free. Although there is no requirement to deposit money into the HSA, there are maximum-contribution limits indexed for inflation from the Department of Treasury.
2007 Contribution Levels for HSAs:
- For 2007, the maximum annual HSA contribution for an eligible individual with self-only coverage was $2,850.
- For family coverage, the maximum HSA contribution was $5,650.
- Per recent legislation, the HDHP deductible no longer effects or limits the maximum HSA contribution.
- Catch up contributions for individuals who are 55 or older was increased by statute to $800 for 2007.
- Both the HSA contribution and catch up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.
- Also per recently enacted legislation, if you have HDHP coverage as of December 1, 2007, you are allowed the full, non-pro rated contribution for the year. However, if you cease to remain an eligible individual throughout 2008, the extra amount contributed is included in income and subject to an additional 10 percent tax.
2008 Annual Contribution Levels for HSAs:
- For 2008, the maximum annual HSA contribution for an eligible individual with self-only coverage is $2,900.
- For family coverage the maximum HSA contribution is $5,800.
- Catch up contributions for individuals who are 55 or older is increased by statute to $900 for 2008.
2009 Annual Contribution Levels for HSAs:
- For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000.
- For family coverage the maximum HSA contribution is $5,950.
- Catch up contributions for individuals who are 55 or older is increased by statute to $1000 for 2009.
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