Health Savings Account (HSA) Contribution Calculator
Health Savings Account (HSA) Contribution Calculator
This Health Savings Account (HSA) calculator determines the amount you are allowed to contribute to your HSA account for the current tax year. The maximum amount of money that can be deposited into an HSA depends on several factors, such as the deductible of the health insurance plan, the accountholder's age, and whether the person has single or family coverage.
In general, a person can contribute 100% of the HDHP deductible up to the maximum amount, which is $2,700 for individual coverage and $5,450 for family coverage, whichever is less*. The amount is reduced based on the number of full months you have HDHP coverage. It can also be increased if you are age 55 to 65 by allowing “catch –up” contributions.
*These amounts are for 2006. These amounts are indexed annually for inflation.
** By checking the box you are indicating your spouse is 55 or older this year and that they are eligible to contribute into an HSA.
*** Your marginal tax rate is used to calculate your potential tax savings. We assume that all contributions receive a tax deduction at the tax rate you enter here.
An HSA is a tax-advantaged account established to pay for qualified medical expenses of an accountholder who is covered under a high-deductible health plan. With money from this account, you pay for healthcare expenses until your deductible is met. Any unused funds are yours to retain in your HSA and accumulate towards your future healthcare expenses or your retirement.
Your HDHP deductible amount is the amount you pay toward your own medical expenses, in a given year, before your insurance begins to cover any expenses.
Select the first full month that your HDHP was in effect. If it was established in a prior year, choose "Prior to January of current year". Contribution limits are calculated using the number of full months your HDHP was in effect. If your HDHP effective date was after January 1st, the amount you can contribute is prorated for the number of full months the HDHP plan was in effect. Please note that the contribution limit is prorated based on when your HDHP plan took effect, not when your HSA account was established.
Your age is used to determine if you are eligible to contribute additional catch-up contributions to your HSA. If you are 55 or older and your HDHP is in effect, you are eligible to deposit catch-up contributions. For 2006, the additional amount is $700. This amount will increase to $800 in 2007, $900 in 2009 and $1000 thereafter. By checking the box you are indicating you are 55 or older this year and are still covered by an HDHP.
Catch-up contributions are not prorated unless you did not have an HSA qualified HDHP for the entire year. In that case, as with your normal contribution limit, the catch-up contribution limit is prorated for the number of full months that the HDHP was in effect.
Your spouse's age is used to determine what catch-up contribution amount they can deposit into an HSA. By checking the box you are indicating your spouse is 55 or older this year and that they are eligible to contribute into an HSA. Please note, your spouse must have an HSA account established in their name and be eligible to make contributions into that account. For example, if your spouse is covered by your family HDHP and is over 55, but has enrolled in Medicare, they would be ineligible to make a catch-up contribution.
If your HDHP deductible or coverage type changed during the current year, check this box. Any change in your deductible amount will affect your yearly maximum contribution. Your annual contribution will be calculated using the number of full months you were covered under each coverage type and deductible amount. For example, if you had single coverage with a $1,050 deductible for 6 full months and family coverage with a $2,100 deductible for 6 full months, your annual contribution amount would be a combination of the two deductibles or $1,575 for the year.
Your marginal tax rate is used to calculate your potential tax savings. We assume that all contributions receive a tax deduction at the tax rate you enter here. Use the table below to assist you in determining your marginal income tax rate.
Filing Status and Income Tax Rates 2006
Caution: Do not use these tax rate schedules to figure 2005 taxes. Use only to figure 2006 estimates.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
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