Are you missing out on one of the best tax deductions your company can receive? A Health Savings Account allows you to maximize deductions and plan for future expenses. As of January 1, 2010, about 10 million people were enrolled in a HSA which is basically a high-deductible health insurance plan that is tax sheltered. This represents a 25 percent increase over the previous year according to a survey released by America’s Health Insurance Plans, a Washington-based trade group.
Here is some information you may find useful as you consider HSAs in 2011.
Contribution Limits will stay the same for 2011 as the IRS has determined that the change in inflation was not significant enough to result in adjustments. Under Internal Revenue Service, Revenue Procedure 2010-22, which was issued Monday, May 24, 2010 the maximum HSA deduction in 2011 is $3,050 for single and $6,150 for family. In addition, the minimum deductible will stay at $1,200 for single coverage and $2,400 for family coverage. The maximum out-of-pocket will also stay at $5,950 for single coverage and $11,900 for family.
Here’s a quick glance at how HSA have evolved over their short history. (Single / Family Contribution Limits)
2004 - $2,600/ $5,150
2005 - $2,650/ $5,250
2006 - $2,700/ $5,450
2007 - $2,850/ $5,650
2008 - $2,900/ $5,800
2009 - $3,000/ $5,950
2010 - $3,050/ $6,150
2011 - $3,050/ $6,150
For more information on HSA guidelines have a look at the link below: or, contact Andy Atwood for a consultation. http://www.irs.gov/pub/irs-drop/rp-10-22.pdf