IRS Finalizes 2007 HSA contribution maximums

The Internal Revenue Service annually adjusts the maximum dollar amount that may be contributed to a health savings account (HSA) and related high deductible health plan (HDHP) minimum deductible and out of pocket expense limits for Consumer Price Index – Urban changes from August to August. Business Insurance reports that the IRS officially released the 2007 changes today.

The changes, which vary depending upon whether the individual has self only or self and family HDHP coverage, are as follows:

2006 2007
HSA contribution max. (self only) $2,700 $2,850
HSA contribution max. (family) $5,450 $5,650
HDHP Out-of-pocket expense max (self only) $5,250 $5,500
HDHP Out-of-pocket expense max (family) $10,500 $11,000
Minimum HDHP deductible (self only) $1,050 $1,100
HDHP Minimum deductible (family) $2,100 $2,200

The IRS explains that individuals 55 and older who are covered by an HDHP can make additional catch-up contributions each year until they enroll in Medicare. The additional “catch-up” contributions to HSA allowed for 2006 is $700 and for 2007 it will be $800.