On October 20, 2011, the Internal Revenue Service issued Revenue Procedure 2011-321 announced the 2012 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code § 223.
The following is a comparison of the 2011 and 2012 limitations:
| Annual Contribution Limit | Y2011 | Y2012 |
|---|---|---|
| Individual with Single Coverage – 223(b)(2)(A) | $3,050 | $3,100 |
| Individual with Dependent Coverage – 223(b)(2)(B) | $6,150 | $6,250 |
| Catch-Up Contribution for Individual Age 55 or older | $1,000 | $1,000 |
| High Deductible Health Plan | Y2011 | Y2011 |
|---|---|---|
| Annual Deductible for Individual with Single Coverage – 223(c)(2)(A) | $1,200 | $1,200 |
| Minimum Annual Deductible for Individual with Dependent Coverage – 223(c)(2)(A) | $2,400 | $2,400 |
| Maximum Annual out-of-pocket for Individual with Single Coverage – 223(c)(2)(A) | $6,050 | $6,050 |
| Annual out-of-pocket max for Individual with Dependent Coverage – 223(c)(2)(A) | $12,100 | $12,100 |
A health savings account is a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA.
No permission or authorization from the IRS is necessary to establish an HSA. When you set up an HSA, you will need to work with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider. Information pertaining to HSAs can be found in IRS Publication 9692.
IRS Publication 502 (Y2010)3 provides a comprehensive list of qualified medical and dental expenses that can be paid from or reimbursed by an HAS.