The IRS has announed the maximum annual HSA contributions for 2011 - and they are the same as in 2010:
- Individuals covered under an eligible high-deductible health plan (HDHP) may contribute up to $3,050 in 2011.
- Those with family HDHP coverage may contribute up to $6,150.
- People age 55 and older who are not entitled to Medicare can make additional catch-up contributions of $1,000 to their HSAs in 2011.
Health Savings Accounts (HSAs) are savings plans with tax advantages provided that account funds are used to pay qualified medical expenses such as prescriptions, doctor's office visits and hospital stays. Generally, medical insurance premiums cannot be paid from HSA account funds; but there are some exceptions including health coverage while receiving unemployment benefits, COBRA continuation coverage, Qualified Long Term Care Insurance premium, and Medicare premiums and out-of-pocket expenses.
Unfortunately, starting in 2011 over-the-counter medicines such as aspirin are no longer considered qualified medical expenses.
You must first be insured under an HDHP in order to open an HSA.
Click here for more information on qualified high deductible health plans.
No comments:
Post a Comment