Compliance Alert



		IRS Issues HSA Limits for 2008 In May 2007, the IRS posted Revenue Procedure 2007-36, which adjusts three major amounts for administration of Health Savings Accounts (HSAs) and high-deductible health plans (HDHPs) in 2008. Based on cost-of-living adjustments, these limits are as follows: HSA contribution limits HSA participants with single coverage under a HDHP may contribute $2,900 to their HSAs (increased from $2,850 in 2007). The HSA family coverage limit is $5,800 (up from the 2007 amount of $5,650). NOTE: The catch-up contribution limit for individuals age 55 or older will increase from $800 to $900 in 2008. Minimum HDHP annual deductibles Single coverage is $1,100 (no change from 2007). Family coverage is $2,200 (no change from 2007). Out-of-pocket spending maximums for HDHPs The maximum annual out-of-pocket amount for HDHP self-coverage increases to $5,600 from the 2007 amount of $5,500. The maximum annual out-of-pocket amount for HDHP family coverage increases to $11,200 from the 2007 amount of $11,000. The Tax Relief and Health Care Act of 2006 required the IRS to issue annual HSA figures by June 1 of the prior year, beginning with the figures for 2008 – a big change from the late-fall release in past years. Having this information earlier will make it easier for employers and advisors working with HDHPs and HSAs to design plan changes for 2008 and communicate them to employees. 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.
June 25, 2007 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