Health & Fitness
What you need to know about health savings account changes in 2012
What's new for 2012? H.S.A. contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged
Health Savings Accounts
What are they? H.S.A.'s are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. You MUST be enrolled in a Qualified HDHP or you cannot contribute to an H.S.A account The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts at year's end can be carried over to following years and added to successive contributions.
What’s new for 2012? H.S.A. contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged.
HSA Contribution Limits:
Find out what's happening in Lower Southamptonfor free with the latest updates from Patch.
- Individual (self-only HDHP): $3,100 ($50 increase from 2011)
- Family: $6,250 ($100 increase from 2011)
Limits for catch-up contributions (for persons over age 55): $1,000 (unchanged from 2011)
HDHP Minimum Required Deductibles:
Find out what's happening in Lower Southamptonfor free with the latest updates from Patch.
- Self-only: $1,200
- Family: $2,400
HDHP Out-of-Pocket Maximum:
- Self-only: $6,050 (a $100 increase from 2011)
- Family: $12,100 (a $200 increase from 2011)
What changed in 2011?
Effective Jan. 1, 2011, expenses incurred for over-the-counter medicines, with the exception of insulin, will not be eligible for reimbursement under a health FSA, HRA or HSA without a prescription. The penalty for using HSA funds for ineligible expenses increased from 10 percent to 20 percent.
For more information contact your cpa, insurance broker, or our office, EMA Group Inc (215)355-2121 http://www.emabenefits.com
