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Health Savings Accounts: Contributions and Deductibles
Health Savings accounts are a good idea. However, as with anything in life there are limits. Before deciding which the best option for you is, you need to know the contribution limits of the health savings account.
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When opening a health savings account, many need to know how much they are allowed to put in. They also need to know what other terms and conditions apply to their particular account. There are limits to how much you can put into your account annually. However, standard health savings account allows you to carry this money over from year to year. Generally your contribution limit is based on a high deductible insurance policy. In 2007 account holders were allowed to place 2,850 $ annually for a single person and 5,650% dollars for a family. This is equivalent to the amount of the deductible on both policies. If your over the age of 55 and additional contribution of 800$ is allowed.
This may not sound like a lot of money but one must remember that these funds are only used on medical expenses that your insurance policy does not cover. The money can also accrue interest and can be carried over from year to year and employer to employer.
When opening a health savings account, generally you must have a high deductible health insurance policy. The minimum requirement for a high deductible health plan is 1050 for singles and 2,100 for families. You also have limits on the annual out of pocket expenses. For singles it cannot exceeds 5,250 and families 10,500.
Although there are limits on contributions, a health savings account can be a life saver when it is needed. You have control over the money and don’t have to worry about if your insurance will cover the expense.
