Ask Colleen King

Health Savings Accounts (HSAs) remain a popular adjunct to qualified high deductible health plans in finding ways to save on health insurance premiums. There are individual health plans and group health plans that you can get that will allow you to open an HSA. For a list of what you can and can’t use the money for, click here.

Every year the IRS sets the figures for maximum contributions, minimum deductibles and few other things that govern health savings accounts. Here are the numbers for 2010:

• Maximum individual contribution to an HSA–$3050
• Maximum family contribution to an HSA–$6150
• Policy out of pocket maximum for individuals–$5950
• Policy out of pocket maximum for families–$11,900
• Minimum deductibles on plans for individuals–$1100
• Minimum deductibles on plans for families–$2400
• Catch up contribution for those over 55–$1000

That last one is potentially really important–for people over 55, if you have some extra cash floating around, you can put an additional $1000 in your HSA, above the annual maximum. This is another potential advantage to a couple both opening up an HSA. For 2009, you could both deposit the $3000 maximum AND an additional $1000. If you only have one account, it is an individual account so you could put the 2009 family max of $5950 plus $1000 for a total of $6950 for the year. If you each have separate HSAs, based on the 2009 figures, you could each put in $3000 to your accounts, plus another $1000 each, for a total of $8000.

But that only works if you are drowning in cash. I don’t consider an HSA to be the first place to stash extra money, most of us would rather put it in a retirement account. But if you’ve maxed out all your ‘pre-tax’ options, here’s one more place. And, it’s deductible on your federal tax return.  Be well!

Tags:   Group Health Insurance · Health insurance · Health Savings Accounts · HSAs · Individual Health Insurance2 Comments