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IRS Releases HSA Funding Limits for 2010

IMPORTANT UPDATE


IRS Releases HSA Funding Limits for 2010

For 2010, the contribution limit for an employee with self-only coverage under a qualifying high deductible health plan is $3,050, up $50 from 2009. For an employee with family coverage, the limit is $6,150, up $200 from 2009.

A qualifying high deductible health plan for 2010 is defined as a health plan with an annual deductible greater than or equal to $1,200 for self-only coverage or $2,400 for family coverage. The limit on annual out-of-pocket expenses is $5,950 for self-only coverage or $11,900 for family coverage.

The current limits and corresponding 2010 limits for self-only and family coverages are compared in the chart below.

  2009 2010
Self-only coverage minimum deductible $ 1,150 $ 1,200
Self-only coverage maximum out of pocket $ 5,800 $ 5,950
Self-only coverage maximum HSA contribution $ 3,000 $ 3,050
Family coverage minimum deductible $ 2,300 $ 2,400
Family coverage maximum out of pocket $ 11,600 $ 11,900
Family coverage maximum HSA contribution $ 5,950 $ 6,150
Catch-Up Contributions (age 55 or older) $ 1,000 $ 1,000

The IRS release can be viewed at http://www.irs.gov/pub/irs-drop/rp-09-29.pdf