IRS Issues HSA Limits for 2009

On May 13, 2008, the IRS posted Revenue Procedure 2008-29, which adjusts three major amounts for administration of Health Savings Accounts (HSAs) and high-deductible health plans (HDHPs) in 2009. Based on cost-of-living adjustments, these limits are as follows:

HSA contribution limits

• HSA participants with single coverage under a HDHP may contribute $3,000 to their HSAs (increased from $2,900 in 2008).
  
• The HSA family coverage limit is $5,950 (up from the 2008 amount of $5,800).
  

NOTE: The catch-up contribution limit for individuals age 55 or older will increase from $900 to $1,000 in 2009.

Minimum HDHP annual deductibles

• Single coverage is $1,150 (increased from $1,100 in 2008).
  
• Family coverage is $2,300 (increased from $2,200 in 2008).
  

Out-of-pocket spending maximums for HDHPs

• The maximum annual out-of-pocket amount for HDHP self-coverage increases to $5,800 from the 2008 amount of $5,600.
  
• The maximum annual out-of-pocket amount for HDHP family coverage increases to $11,600 from the 2008 amount of $11,200.
  

You can access a copy of the Revenue Procedure by clicking here. Should you have additional questions regarding these new limits, please contact our office at 919-403-1986.

Please Note: If you no longer wish to receive communications of this nature from Hill, Chesson & Woody, please reply to the sender of the email with the word "unsubscribe" in the header.  Thank you.

Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

May 22, 2008

Hill, Chesson & Woody Employee Benefit Services

194 Finley Golf Course Rd, Suite 200,
Chapel Hill, NC 27517
Phone: 919.403.1986
Fax: 919.913.0237

www.hcwbenefits.com