2010 HSA Limits

Treasury and IRS Issue Indexed Amounts for Health Savings Accounts

The Treasury Department and IRS issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs. These amounts have been indexed for cost-of-living adjustments for 2010.

"Knowing the dollar limits for these accounts, and for the high deductible insurance that goes with them, is critical for those who want to get the maximum benefit out of this revolutionary health care coverage option – one that puts health care spending decisions back in the hands of individuals," said Treasury's Acting Assistant Secretary for Tax Policy Greg Jenner.

The new levels are as follows:

New Annual Contribution Levels for HSAs in 2010:

• Allowing people to take their health savings accounts with them if they move from job to job.
• Raising contribution limits and allowing for a one-time transfers from IRA accounts.
• Allowing a contribution up to an annual limit of $3,050, regardless of the deductible for their insurance plan.
• Allowing the option to fully fund their HSAs regardless of what time of year they sign up for the plan

The maximum annual out-of-pocket amount for HDHP self-coverage increases to $5,950 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,900.
Minimum Deductible Amounts for HSA-Compatible HDHPs:

For 2010, the minimum deductible for HDHP is $1,200 for self-only coverage and $2,400 for family coverage.