2010 Health Savings Accounts (HSA) contribution limits announced

May 21, 4:46 PMBaltimore Financial ExaminerTom Taylor, CPA/PFS

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HSAs or Health Savings Accounts are gaining in popularity as the cost of health care premiums increase annually.  Check with your employer if they offer HSAs that are only available with a High Deductible Health Plan offered by your employer.  The nuts and bolts are essentially if you participate in a high deductible health care plan you typically receive a lower monthly premium for paying the first expenses out of pocket.  The deductibles are $1,200 for self-only coverage and $2,400 of family coverage.  In addition to the lower monthly premium you can save money in an HSA that is tax-deductible, regardless of your income level.  The great thing about HSAs is that it's not a use it or lose it plan.  You can carry over any unused balance to future years allowing you to save money tax free.

The 2009 annual contribution limits are $3,000 for self-only and $5,950 for family coverage.  A catch-up contribution is available for taxpayers 55 and older of $1,000.

The 2010 annual contribution limits are $3,050 for self-only and $6,150 for family coverage.  A catch-up contribution is available for taxpayers 55 and older of $1,000.

Check with your CPA or Financial Planner if it makes sense for you but more and more employers are offering the plans and in this writer's opinion, HSA's are a no-brainer.

Here are a couple links to more information on HSAs...

For detailed HSA information, rules and regulations check out www.hsa223.com

For a look at the 2010 contribution limits as published by the IRS check out www.thomacap.com/files/2010%20HSA%20savings%20rates.pdf

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Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management in Towson, MD.  He is a member of NAPFA and the MACPA.