2008 MINIMUMS AND MAXIMUMS FOR HEALTH SAVINGS ACCOUNTS PLANS AND HIGH-DEDUCTIBLE HEALTH PLANS
The Internal Revenue Service (IRS) recently released Revenue Procedure 2007-36,1 which announced various inflation-adjusted amounts for 2008 for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). In previous years, these amounts were released in November. However, this time frame meant that plan sponsors with HSAs had little time to incorporate these figures into their planning or employee communications. Congress enacted the Tax Relief and Health Care Act of 2006,2 to address several problems in HSA administration, one of which was the delay in releasing indexed amounts. As a result of this Act, the IRS is now required to publish annual HSA/HDHP updates no later than June 1. The IRS calculates the annual adjustments using the 12-month period ending March 31 (instead of August 31).
The new numbers are shown in the chart below.
2008 Minimums and Maximums for HSAs* and HDHPs |
|
Individual Coverage |
Family Coverage |
Maximum Annual HSA Contribution** |
$2,900
(up $50 from $2,850 in 2007) |
$5,800
(up $150 from $5,650 in 2007) |
Minimum HDHP Deductible |
$1,100
(no change from 2007) |
$2,200
(no change from 2007) |
Maximum HDHP Deductible |
None |
None |
Maximum HDHP Out-of-Pocket Expense*** |
$5,600
(up $100 from $5,500 in 2007) |
$11,200
(up $200 from $11,000 in 2007) |
|
|
|
