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Contribution Limits & IRS Guidelines

2013 IRS Limits
Single Plan Family Plan
Maximum Contribution Limit $3,250 $6,450
Minimum Deductible $1,250 $2,500
Maximum Out-of-pocket $6,250 $12,500
Catch-up Contribution (55+) $1,000 $1,000

2014 IRS Limits
Single Plan Family Plan
Maximum Contribution Limit $3,300 $6,550
Minimum Deductible $1,250 $2,500
Maximum Out-of-pocket $6,350 $12,700
Catch-up Contribution (55+) $1,000 $1,000


HSA-compatible Health Plans

The IRS sets annual requirements for the minimum deductible and maximum out-of-pocket expense for HSA-compatible health plans. Verify with your health plan representative that your health plan is compatible.

Catch-up Contributions

Individuals age 55 and over can make catch-up contributions directly through Internet Banking or by mailing a personal check.

Excess Contribution Removal

If you exceed the maximum contribution amount for a given year, you can remove the excess funds by your tax filing deadline, typically April 15, without tax penalty. To remove an excess contribution, please complete the Excess Contribution Removal Form and mail it to HSA Bank.

If excess funds are not removed by your tax filing deadline, you may be subject to tax penalties and/or IRS fees.

Rollover Funds to Your HSA

You may be eligible for a one-time rollover from your FSA or HRA as long as you meet the conditions and eligibility requirements. Per IRS Notice 2007-22, you must:

1) have had an FSA or HRA on September 21, 2006;
2) roll over the lesser of the balance in the FSA or HRA on September 21, 2006 or as of the date of the distribution; and
3) bring the FSA or HRA balance to zero. Contact your employer who will need to initiate the rollover process by contacting the FSA or HRA administrator. For more information, reference IRS notice 2007-22.

A one-time rollover from an IRA is allowed up to the annual IRS maximum amounts. Contact your tax advisor to discuss the benefits and tax reporting requirements.


cost of healthcare

Examples of Prorating Contributions
Prorating is required to avoid tax penalties when an individual does not maintain HSA-compatible coverage through December 31st of the following year.

Coverage Type Coverage Begins Coverage
Ends
Allowed 2013 Contribution
Individual 1/1/2013 12/31/2013 $3,250
Individual 7/1/2013 12/31/2013 $1,625
Individual 4/1/2013 7/1/2013 $812.50
Individual 11/1/2013 11/2/2013 $270.83

Coverage Type Coverage Begins Coverage
Ends
Allowed 2013 Contribution
Family 1/1/2013 12/31/2013 $6,450
Family 7/1/2013 12/31/2013 $3,225
Family 4/1/2013 7/1/2013 $1,612.50
Family 11/1/2013 11/2/2013 $537.50

Mid-year Coverage
If your new HSA-compatible coverage begins in July of a given year, you are eligible to contribute the maximum amount for that year provided that you maintain coverage until December 31st of the following year.

Health Plan Status Change
If you begin the year with family coverage and switch to single coverage in July of that year, you are eligible to contribute half of the family coverage contribution maximum and half of the individual coverage contribution maximum.