The IRS recently issued guidance outlining the maximum annual contributions for health savings accounts (HSAs) for calendar years 2007 and 2008 [Rev. Proc. 2007-36].
Previously, the maximum contribution was calculated as the lesser of the deductible of the accompanying high deductible health plan or the indexed statutory amount. However, the Health Opportunity Patient Empowerment Act of 2006 specified that the maximum annual contribution is the indexed statutory amount for taxable years beginning after December 31, 2006 .
According to the IRS, the annual contribution limit on deductions is as follows:
- Calendar year 2007: $2,850 for an individual with self-only coverage under a high deductible health plan and $5,650 for an individual with family coverage
- Calendar year 2008: $2,900 for an individual with self-only coverage under a high deductible health plan and $5,800 for an individual with family coverage.
The IRS guidance also states that, for calendar year 2008, a "high deductible health plan" is one that has:
- An annual deductible of at least $1,100 for self-only coverage or $2,200 for family coverage, and
- Annual out-of-pocket expenses (e.g., deductibles, co-payments, etc., but not premiums) up to $5,600 for self-only coverage or $11,200 for family coverage.