2007 HSA Limits

The Treasury Department and IRS annually issues new limits for 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 are indexed for cost-of-living adjustments each year.

The 2007 levels are as follows:

Annual Contribution Levels for HSAs:

For 2007, the maximum annual HSA contribution for an eligible individual with self-only coverage is $2,850. For family coverage the maximum HSA contribution is $5,650. Catch up contribution for individual who are 55 or older is increased by statute to $800 for 2007.

Because of changes in law that have been implemented following the enactment of the "Health Opportunity Patient Empowerment Act of 2006" on December 20, 2006, the HSA contribution and catch up contribution no longer apply pro rata based on the number of months of the year a taxpayer is an eligible individual. Also, going forward taxpayers covered by qualified health plans may contribute up to the maximum deductibles of $2,850 for self-only coverage and $5,650 for family coverage irrespective of the level of the deductibles under their qualified health plans.

Out-of-Pocket Limits on HSA-Compatible HDHPs:

For 2007, the maximum annual out-of-pocket limit for HDHP self-coverage is $5,500, and the maximum annual out-of-pocket limit for HDHP family coverage is $11,000..

Minimum Deductible Amounts for HSA-Compatible HDHPs:

For 2007, the minimum deductible for HDHPs increases to $1,100 for self-only coverage and $2,200 for family coverage.