Meeting the insurance needs of
Central Florida individuals and businesses.

Contact Us By Email

Insurance Consultants
of Central Florida

227 S. Orlando Ave, 1st Floor
Winter Park, FL 32789

Phone: (407) 740-5337
Fax (407) 740-8786

Health Savings Accounts

Click to visit our main website
to contact one of our individual health agents

Questions and Answers regarding Health Savings Account Contributions

How much can I contribute to an HSA?

Contributions must be made in cash to an HSA that you establish with a qualified HSA trustee or custodian, such as an insurance company or bank, and cannot exceed a maximum annual limit, which is indexed annually for inflation:

You can contribute up to the maximum annual HSA contribution regardless of when during the year your HSA coverage begins. If, however, your coverage begins during the year, you must maintain the high-deductible health plan for a full 12 months or pay tax on your HSA contribution plus a 10% penalty. In addition, individuals between ages 55 and 65 can make an additional "catch-up" contribution of up to $900 in 2008. The "catch-up" contribution increases to $1,000 in 2009 and for all years after that.

Who can make contributions to an HSA?

Contributions to an HSA can be made by an eligible individual, directly or through a cafeteria plan, by a family member on behalf of an eligible individual or by the eligible individual's employer. In addition, you may be able to roll over (transfer) unused funds from a flexible spending account (FSA) or health reimbursement account (HRA) or from an IRA to an HSA on a tax-free basis. Regardless of who makes the contributions, you own the HSA.

How am I taxed on HSA contributions?

You deduct your HSA contributions on an "above the line" basis, resulting in a dollarfor- dollar reduction in your adjusted gross income. Any contributions made by an employer to an HSA are not included in your gross income for tax purposes and are not subject to withholding.

When must HSA contributions be made?

Contributions may be made at any time of the year in one or more payments, but must be made no later than April 15 of the year following the year for which the deduction is taken.

Must I contribute the maximum to an HSA?

While there is no requirement that you contribute the maximum to your HSA each year, doing so will enable you to take full advantage of the powerful tax benefits provided by an HSA.