As we prepare to turn the calendar, thought it might be helpful to have handy the 2012 tax-free contribution limits for Health Savings Accounts (HSAs). The limit increased $50 for individuals to $3,100 and $100 for families to $6,250. In short, this means you can contribute to these limits before taxes are deducted, and can use your HSA balance for qualified medical expenses tax free as long as you have the account tied to a high deductible medical insurance plan.
The "catch-up provision" limit remained unchanged at $1,000 for individuals age 55+. This is extremely important for those positioning for retirement or late entries into an HSA program.
While we're at it, just another reminder too that in 2011 over the counter medications were deemed INELIGIBLE for HSA reimbursements; a change from all previous years.
I hope you find this useful as you prepare for what we believe will be a prosperous and positive 2012! Happy New Year!