Recent changes in HSA law enacted as part of the Tax Relief & Health Care Act of 2006 provide new opportunities for individuals and families to save for current and future health care:

• HSA holders can choose to save up to $2,850 for an individual and $5,650 for a family in 2007 (customers 55 and older get to save an extra $800 which means $3,650 for an individual and $6,450 for a family) – and these contributions are 100% tax deductible from gross income.
• The new law allows a onetime transfer from an IRA (individual retirement account) or FSA (flexible spending account) to an HSA. The onetime transfer from an IRA cannot exceed the annual contribution limit. Unlike with an IRA or 401K, savings withdrawn from an HSA are not taxable as long as they are spent on qualified medical expenses.
• Also, for individuals and families who open their HSA in a month other than January, the new law removes barriers to contributing the maximum amount for the year.

For more detailed information on changes in HSA law, visit the U.S. Department of Treasury website at www.ustreas.gov or talk with your tax advisor.

• Is an HSA plan the right choice for me?
  
• 2008 HSA Contribution Limits
  
• 2007 Law Changes
  
• Frequently Asked Questions