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IRS Releases Health Savings Account Contribution Limits and High Deductible Health Plan (HDHP) Requirements for 2008
HSA Contribution Amounts and HDHP Requirements Increase for 2008
On May 12, 2007, the IRS released new Health Savings Account (HSA) contribution amounts and High Deductilbe Health Plan (HDHP) requirements for 2008 (Rev. Proc. 2007-36).
Effective January 1, 2008, the following changes will take effect:
The maximum HSA contribution amount for self-only HDHP coverage will increase to $2,900 (up from $2,850 for 2007) and the maximum contribution for family HDHP coverage will increase to $5,800 (up from $5.650 for 2007). (Please keep in mind that these HSA contribution amounts are no longer limited by an indivdiual’s HDHP deductible. This limitation was removed by the Tax Relief and Heealthcare Act of 2006.)
The HSA catch-up contribution for those 55 years of age and older will increase to $900 (up from $800 for 2007).
The required minimum annual deductible for self-only HDHP coverage will remain at $1,100 (no change from 2007) and the required deductible for family coverage will remain at $2,200 (no change from 2007).
The maximum out-of-pocket expense amount for self-only HDHP coverage will increase to $5,600 (up from $5,500 for 2006) and the family out-of-pocket maximum will increase to $11,200 (up from $11,000 for 2007.
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