Current HSA Guidelines - 2011

HEALTHCARE REFORM UPDATE

If you're serious about regaining control of your healthcare dollars, this is a great time to consider replacing your high cost health plan with a cost-effecitve health savings account plan. Or, if you have an existing HSA plan, this is a great time to consider switching to a new, reform-compliant plan.

Due to reform mandates, all NEW HSA-qualified health insurance plans now include important new benefits, including:

  • Unlimited Lifetime Maximums
  • Extensive preventative care benefits at NO out-of-pocket cost to you!
Click on the orange GO button on the right to get quotes on updated plans. Or better yet, feel free to call my office for immediate, personalized service and I'll personally work up your quotes while we're on the phone: 702.425.5250.

Permissible range of deductibles for underlying HSA-qualified insurance policy:
Each year, the IRS establishes current guidelines for HSA qualified insurance policies. These numbers are subject to change from year to year due to inflationary factors. The guidelines listed below are for the tax year 2011 (unchanged from 2010).

Minimums and Maximums for 2011
 
Single Plan
Family Plan
Minimum Deductible
1,200
2,400
Maximum Out-of-Pocket
5,950
11,900


CAUTION: Not every policy with a high deductible is HSA-qualified, even if it appears to fall within the ranges outlined above. Most people who currently have a high deductible policy will need to apply for a new, properly-qualifed high deductible policy in order to be eligible to participate in an HSA plan. Typically, a high deductible policy underwritten by major insurers will clearly be labeled as HSA-qualified if it is properly qualified.

Because this is such a common question with our prospective clients, we have developed a special info page to help you determine whether your current "high deductible" policy is, in fact, HSA-qualified. Please click the link on the right entitled High Deductible Plan Designs to help determine whether any particular policy with a "high deductible" is qualified to work with a health savings account. If you have any questions, please do not hesitate to contact our offices.

Maximum HSA Account Contribution Levels for 2011:

For 2011, you can contribute up to
Single Plan
3,050
Family Plan
6,150

Overview - HSA Contributions:

ALL monies properly contributed to a health savings account are immediately and FULLY VESTED to the account holder. There is no "use it or lose it" provision with health savings accounts. Regardless of the year-end balance, a health savings account can be additionally funded up to the maxium the following year, and the year after that, etc. There is no other financial vehicle like a health savings account, where withdrawals can be made tax-free for qualified medical expenses. (See section below entitled Tax Treatment of Withdrawals for a complete list of HSA-qualified expenses that may be paid with tax-free dollars.)

Other info regarding contributions:

  • Maximum annual contributions can be reached regardless of deductible size on underlying HSA insurance policy (anything within acceptable ranges)
  • You are eligible for the maximum contribution in your first year, so long as your HSA insurance plan is effective by Dec. 1
  • You can make a one-time contribution from an IRA, HRA, or FSA account, not to exceed the initial year's eligible contribution
  • Catch-up contributions: Individuals age 55+ are entitled to make additional "catch-up" contributions up to $1,000 this year and every subsequent year
  • An employer may contribute to an employee's HSA account (pre-tax basis to employee, tax-deductible to employer), but combined contributions by employer and employee (if any) may not exceed annual maximum allowable amount

Tax Treatment of Withdrawals--Overview:

Withdrawals are tax-free and penalty free if used to pay for:

  • HSA-qualified medical expenses (click the link for a complete list of allowable expenses)
  • COBRA premiums
  • Health insurance premiums, but only while receiving unemployment compensation
  • Premiums for qualified long term care insurance

Withdrawals are subject to ordinary income tax and a 20% premature withdrawal penalty if:

  • Made before age 65, AND
  • Used to pay non-qualifying medical expenses

Withdrawals are not subject to a premature withdrawal penalty if made:

  • After turning 65, or
  • Due to death or disability (any age)

Here is an easy link to our HSA insurance home page

Health Plan Quotes
See how much you can save
with a new high deductible plan
Select
State:
We quote multiple A-rated companies
hsa top menu
HSA Info Links
How an HSA Works
Current HSA Guidelines (IRS)
HSA PowerPoint (very cool)
HSA FAQ
High Deductible Plan Designs
Estimate Your Savings
Other HSA Info
White Papers-Insider Secrets
hsa menu bottom


hsa top menu
  Quality Insurers

Our agency represents major, name-brand, highly-rated companies, including:

hsa menu bottom


hsa top menu
Client Comments

"Our accountant recommended this plan. We're glad she did. The premiums we save from our Blue Cross plan are fully funding our HSA, and from that we are getting an additional $1,600 tax savings."
R.P., Broken Arrow, OK

"The service we receive from your firm is outstanding. Just like you say on your website, you're just a phone call away. But even better, you always seem to know the right answer.
T.M., Vero Beach, FL

hsa menu bottom