As expected, the IRS recently released that there are not going to be any changes on HSA limits in 201l. These limits include:
Maximum Contribution:
$3,050 Individual
$6,150 Family
HDHP Maximum Out-of-Pocket:
HDHP Maximum Out-of-Pocket:
$5,950 Individual
$11,900 Family
HDHP Minimum Deductible:
$1,200 Individual
$2,400 Family
An additional catch-up contribution of $1,000 is available to account holders ages 55 and older.
There are also 2 provisions of the Patient Protection and Affordable Care Act that are scheduled to take effect in 2011, unless Congress changes them:
1) The tax penalty on HSA withdrawals not used for qualified medical expenses will be increased from the current 10% penalty to 20%.
2) Expenses for OTC medications (other than insulin) will not be eligible for payment or reimbursement from HSAs or other types of consumer-directed health accounts, unless they are obtained with a prescription.
For additional details, please refer to the IRS document at http://www.irs.gov/pub/irs-drop/rp-10-22.pdf
The 2nd provision is a real shame. It was really easy to pay for something at the drug store that was eligible to be paid with HSA dollars. All you had to do was use your card like you would any other debit or credit card. Drugstores had even begun noting on the receipt which of your purchases were covered.
The 2nd provision is a real shame. It was really easy to pay for something at the drug store that was eligible to be paid with HSA dollars. All you had to do was use your card like you would any other debit or credit card. Drugstores had even begun noting on the receipt which of your purchases were covered.
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