H S A’s for 2012

Health Savings Accounts

What are they? HSAs are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts in one year can be carried over to following years and added to subsequent contributions.

What’s new for 2012? HSA contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged.

HSA Contribution Limits:

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:

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.

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