Health Savings Account (HSA)

A Health Savings Account or HSA is a tax-deductible savings account with tax-free withdrawals if the money is used exclusively for paying or reimbursing qualified medical expenses (doctor visits, prescription drugs, over-the-counter medicines) of the owner, his or her spouse and dependents.

To make contributions to an HSA the account owner must meet all of the following requirements:

• Must be covered under a High Deductible Health Plan (HDHP)
  
• Is not covered by any other health plan that is not an HDHP
  
• Is not enrolled in Medicare
• Cannot be claimed as a dependent on another person's tax return
• Is less than 65 years old.
  

What is a High Deductible Health Plan? It is a medical insurance plan that has a deductible of at least $1,100 (for single coverage - account owner only) with a maximum out-of-pocket cap of $5,500. For family coverage the deductible is at least $2,200 with a maximum out-of-pocket cap of $11,000. These amounts are adjusted annually for inflation.

The maximum contribution limit is:

Year	Single Coverage	Family Coverage	Catch-up Provision for people ages 55 and over
2007	$2,850	$5,650	$800
2008	$2,900	$5,800	$900

Contributions for the current year can be made until April 15 of the following year.

For more information, contact the Call Center at 888.732.8562 or visit the U.S. Department of Treasury's Web site.