Determine Contributions

The amount you can contribute into your HSA is either your health plan deductible amount or the IRS maximum contribution limit, which ever is lower. For 2007, the IRS limits are $2,850 for single coverage and $5,650 for family coverage. You might also be allowed to make additional contributions depending upon your age. This is known as a catch-up contribution.

About tax deductions
Up to certain limits, contributions to an HSA are tax deductible ($2,850 for single coverage and $5,650 for family coverage). You’ll receive your tax deduction on a pre-tax basis if your employer deducts your contribution before taxes are applied. Otherwise, you’ll take a tax deduction at the end of the year.

Determining your maximum allowable contribution
Our HSA contribution calculator can help you determine how much to contribute.