Who can have a Health Savings Account?

Any adult individual can contribute to a Health Savings Account if they:

• have coverage under a High Deductible Health Plan
• are not covered by any health plan that is not an HDHP (exceptions exist for insurance that covers accidents, disability, dental care, vision care, long-term care and other "permitted insurance.)
• are not enrolled in Medicare
• are not claimed as a dependent on someone else's tax return.
  
  
  

  2008 HDHP Limits1
  Plan Coverage	Self Only	Family
  Annual Deductible	$1,100 or more	$2,200 or more
  Annual Deductible plus out-of-pocket expenses cannot exceed...	$5,600	$11,200

The person who opens a Health Savings Account is called the HSA owner.

You, your employer, or both can make contributions to a Health Savings Account.

The total amount you may contribute to an HSA for any taxable year is dependent upon whether you have individual or family coverage under a high deductible health plan (HDHP) as shown in the table below.

In addition to the standard HSA contribution limits shown in the table, if you have reached age 55 before the close of a taxable year, you may also contribute an additional amount known as a "catch-up" contribution. The catch-up contribution limit is $700 for 2006, and is scheduled to increase through 2009.

* Annual Percentage Yield. Rate is 5.00%.

The information on this page is provided by BISYS Retirement Services and the IRS, and is not intended as tax advice. Please consult a tax professional.

¹ The HDHP deductible amounts for 2008 are the same as the 2007 HDHP deductible amounts.

² HDHP and contribution limitations are revised each year to reflect cost-of-living increases.