2012 Updates on Contribution Limits, Deductibles, and Out-of-Pocket Expenses

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.

Learn a little more about 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 offers individuals and families additional opportunities to save for current and future health care with a health savings account:

• HSA holders can choose to save up to $3,100 for an individual and $6,250 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,100 for an individual and $7,250 for a family) – and these contributions are 100% tax deductible from gross income.
• Minimum annual deductibles are $1,200 for self-only coverage or $2,400 for family coverage.
• Annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $5,950 for self-only coverage and $11,900 for family coverage.

For more information on individual and family minimum deductibles, maximum out-of-pockets, contribution limits, and 55+ contribution, view the chart here.

View contribution limits from previous years

If you think an HSA would be a good fit for you as an individual or for your family, give us a call and we can help you decide and answer any questions you may have.

sources: hsacenter.com, hsacontributionlimits.com