IRS Releases 2009 Health Savings Account Limits.On May 13, 2008, the Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ) released Revenue Procedure 2008-29, establishing the 2009 annual Health Savings Account A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. (HSA HSA Health Savings Account (US) HSA Human Serum Albumin HSA Human Services Agency (Nevada) HSA Health Services Agency HSA Health and Safety Authority (Ireland) ) contribution limitations and High Deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). Health Care (HDHC) plan limitations (adjusted for inflation) for qualified Health Savings Accounts (HSA). The limitations are effective for calendar year 2009. 2009 Annual HSA Contribution Limitation: HSA contribution limits are applicable to all contributions made to the HSA of an eligible individual, whether made directly by or on behalf of the eligible individual. For 2009, the annual HSA contribution limitation under a HDHC Plan is: Individual coverage: $3,000 Family coverage: $5,950 2009 Annual Qualified HDHC Plan Limitations: In order to qualify as a HDHC plan for HSA purposes, a health care plan must satisfy the following requirements: Minimum Annual HDHC Plan Deductible Limitation (not less than): Individual coverage: $1,150 Family coverage: $2,300 Maximum Annual HDHC Plan Out of Pocket Expenses Limitation (not to exceed): Individual coverage: $5,800 Family coverage: $11,600 Individual coverage means coverage under a qualified HDHC plan for one HSA eligible individual. Family coverage means coverage under a qualified HDHC plan for more than one HSA eligible individual. While not addressed in the Revenue Procedure, it is worth noting that the annual catch-up contribution permitted for HSA eligible individuals age 55 and over in 2009 will increase to $1,000. Given the advance notice of the 2009 limitations with regard to HSAs, all contributors should take the time to carefully review HDHC plan provisions and begin planning the timing of 2009 contributions so as not to exceed the annual limitations. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Mr Steven Friedman Littler Mendelson Littler Mendelson P.C. is a San Francisco-based law firm with one of the largest employment law practices in the United States. History and practice The firm was founded in 1942 by a deputy Attorney General of California and a director of the War Labor Board, initially to 885 Third Avenue 16th Floor New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of N Y 10022-6022 UNITED STATES United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Tel: 4154331940 Fax: 4159863925 E-mail: Mfigueroa@littler.com URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.littler.com Click Here for related articles (c) Mondaq Ltd, 2008 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
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