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2009 Indexed HDHP and HSA Contribution Limits

The Treasury Department and Internal Revenue Service released IRS 2008-29 which lists the new indexed amounts, adjusted for inflation, for HDHPs and HSAs under Internal Revenue Code section 223(g).

To whom do these new inflated amounts apply?
These rates will apply to any employer offering a Health Savings Account (HSA) and/or qualified High Deductible Health Plan (HDHP). Merely because a plan has high deductibles, will not in and of itself, make the plan a HDHP. In order for a plan to be considered a qualified HDHP, in addition to other requirements, the plan must satisfy minimum deductible and maximum out-of-pocket requirements.

What are the new inflated amounts?
For HSAs: The annual HSA contribution amounts for individual coverage is $3,000 and $5,950 for family coverage. Catch-up contributions continue to be allowed for HSA eligible individuals age 55 and over. The annual catch-up contribution amounts have been increased to $1,000.

For a HDHP: In order for a plan to be considered a qualified HDHP, for 2009, the minimum deductible cannot be less than $1,150 for an individual and $2,300 for a family. The maximum out-of-pocket cannot exceed $5,800 for an individual and $11,600 for a family.

When do these new inflated amounts go into effect?
The new inflated amounts will apply to calendar years starting January 1, 2009.

How do these new inflated amounts impact employers?
For any employer who currently offers an HSA and/or HDHP, employers must amend their plan documents and other marketing materials to reflect these new inflated amounts. Any employer who is considering adding a HSA and/or HDHP, should remember to build those plans keeping the above limits in mind.