What Are the Limits on Deductibility of HSA Contributions?
Beginning in 2007, the maximum annual contribution to an HSA is $2,850 for an eligible individual with self-only coverage, or $5,650 for an eligible individual with family coverage. These amounts also are increased annually for COLAs. For individuals who have attained age 55 by the end of the taxable year, the annual contribution limit is increased by $800 in 2007, $900 in 2008, and $1,000 in 2009 and thereafter. In contrast with previous years, starting in 2007, the maximum deductible contribution is not limited to the eligible individual’s annual deductible under the high deductible health plan. Full-Year Contributions for Part-Year Account Holders Also beginning in 2007, for purposes of computing the annual HSA contribution amount, an individual who is eligible during the last month of a taxable year is treated as having been eligible for all prior months during the taxable year and, thus, is allowed to make contributions for months before the individual was enrolled in a high deduc
