Fund your HSA for the year — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Fund your HSA for the year

Get PDF file

by on
in Small Business Tax

With a Health Savings Account (HSA), you can contribute up to $2,900 for 2008 ($5,800 for family coverage) in conjunction with a high-deductible health insurance plan. Distributions are tax-free to the extent they are used for medical expenses.         

Strategy: Open an HSA before Jan. 1. A new IRS ruling says you can still contribute the maximum amount allowed for the year. (IRS Notice 2008-52)

However, if you don’t remain HSA-eligible in 2009, you must pay tax plus a 10% penalty on an amount equal to the part of the HSA contribution for 2008.

Tip: If you’re age 55 or older, you can contribute an extra $900 for 2008.

Related Articles...

Leave a Comment

Previous post:

Next post: