Good Neighbor Insurance agents, dev.gninsurance.com, provide their clients with Health Saving Account plans for those residing in Arizona.
Health Savings Accounts (HSAs) were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses. Medical Saving Account (MSA) plans were the grandfather of high-deductible health plans with tax-preferred saving options but no longer provided.
Since the HSA is a tax advantaged account it is subject to contribution limits similar to Individual Retirement Accounts. The money you contribute to your HSA through your employer is not subject to federal tax at the time of deposit (Pre-Tax Dollars). If you are self-employed the dollars contributed are an “above the line” deduction on your taxes.
2012 HSA Contribution Limits
Each year the HSA Contribution Limits are revised (or remain unchanged) based on the inflation rate of the previous year. This year the HSA Contribution Limits were raised about 1.63% based on the rise of the Consumer Price Index (CPI) in the previous year. This means that the contribution limit for an individual increased $50 to $3,100 and the limit for families increased $100 to $6,250. The catch-up provision for those age 55+ remains at $1000.
|2012 Contribution Limits|
|Single Plan||Family Plan|
|Maximum Contribution Limit||$3,100||$6,250|
|Catch-up Contribution (55+)||$1,000||$1,000|
You must have your HSA-qualified health insurance in place by December 1st in order to qualify for that same year’s tax break. You may make direct contributions to your HSA bank account until April 15th of the following year to the last year’s contribution limit.
Here is another chart to show the past HSA’s year contributions
|Additional Catch-Up Contribution
(55 or older) (Single and Family)
2013 Contribution Limits
At this time the contribution limits for Flexible Spending Accounts (FSA) will be changing. FSAs is one of the number of tax advantage options that employers (groups) in the U.S. may use to help save on premiums and taxation. The new PPACA (the new health care law signed into law by President Obama in March of 2010) will limit the amount employees can contribute to a FSA account. Note that FSA plans are for those who work for a company.
However, at this time, HSAs are not set to change to a lower contribution limit. Good Neighbor Insurance, dev.gninsurance.com, will keep you informed as soon as anything is mentioned on the 2013 annual contributions for HSAs.
Doug Gulleson loves to scuba dive overseas and makes sure he has his US health care and overseas health care information with him at all times when he travels (check out his diving travels at www.douggulleson.com). Keep our blog close by you, www.gntravelinsurance.com , for continual updates on the changes with the US health care system.