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Tax Relief and Health Care Act of 2006
Old 01-03-2007, 12:03 PM   #1
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Tax Relief and Health Care Act of 2006

I thought Martha started a thread on this, but I couldn't find it. Several changes in HSA's kicked in on Jan 1, including removal of the deductible-based limit on contributions.

Now everybody with an HSA can contribute the max ($5650 per family in 2007). I had to read through a lot of verbiage to determine that the limit is not retroactive, so if you haven't made your 2006 contribution, the limit is still the same as last year.

You can read about the details starting on page 76 of this doc:

technical details

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Re: Tax Relief and Health Care Act of 2006
Old 01-03-2007, 01:04 PM   #2
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Re: Tax Relief and Health Care Act of 2006

I read through the linked text. Let's see if I have this right: in my case, DW has a family high deductible plan through her employer with a $2400 deductible. Her employer allows a $2400 contribution to an HSA. Now this new legislation is enacted. DW's maximum allowable HSA contribution is $5650 now. So DW can either contribute an additional $3250 to her HSA through her employer (if they change their rules to allow her to do so) or DW can contribute $3250 to a HSA at a custodian of our choice. Right? Any problems with this that anyone can see?

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Re: Tax Relief and Health Care Act of 2006
Old 01-03-2007, 02:04 PM   #3
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Re: Tax Relief and Health Care Act of 2006

Here's a chart with some examples that might make a little more sense. If you have an HSA account either through work or personally, you can now contribute the maximum allowable amount to that account even if your deductible is lower than the maximum allowable. Make sure that the combined contributions of the employer and the employee into the same account do not exceed the maximum allowable amount.
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