2009 Health Savings Account Contribution Limits
Each year the amount of money that Health savings account owners can contribute to their plan increases. Whether the insured owns a family plan or an individual plan has an impact of the HSA’s contribution amount.
Contribution Limits for 2009
For 2009, $3,000 is the amount that an individual can contribute. However, families can contribute up to $5,950. This money can be used to pay for several qualified medical expenses such as; co-insurance, meeting deductibles, prescriptions, doctor’s office visits, dental bills, and a variety of other things. You can find a list of qualified medical expenses on the IRS website.
Health savings account qualified plans are offered by all insurance companies. Generally, there is a lower premium and a higher deductable with this health insurance. Much like an IRA contribution, the person insured can add to their HSA account every year and then write it off on their income taxes.
The HSA will accumulate tax deferred and any money that is spent on qualified medical expenses is tax free. So if you like lower premiums and you don’t mind putting in some money from your own pocket, then this type of insurance might be for you. After the deductible is met, the insurance company normally pays 100% of the expenses.
Advantages of Health Savings Accounts
If you are the type of person who likes to have control of your health insurance money, then HSA’s are for you. This way, you are free to use the savings for your regular doctor visits, any generic prescriptions and oter first dollar expenses. Traditional coverage that offers the same deductible can be more expensive then the HSA qualified plan. With a traditional plan you usually have two or more deductibles to meet before your coverage starts. The HSA family plan generally only has one deductible to be met. Remember, HSA may not be for everybody, however, they can be an important addition to health insurance field.
Last Modified April 7, 2010 @ 10:29 am