Benefit Providers Inc.

In Revenue Procedure 2008-29, the IRS provides the statutory HSA contribution and HDHP minimum deductible and out-of-pocket limits for 2009. These amounts for 2009 as compared to 2008 are shown below. The catch-up contribution limit prescribed by statute is also included.

	2008	2009
HDHP Minimum Deductible Amount
Individual	$1,100	$1,150
Family	$2,200	$2,300
HDHP Maximum Out-of-Pocket Amount
Individual	$5,600	$5,800
Family	$11,200	$11,600
HSA Statutory Contribution Amount
Individual	$2,900	$3,000
Family	$5,800	$5,950
Catch-Up Contributions (age 55 and older)	$900	$1,000

May 13, 2008
hp-975

Treasury, IRS Issue 2009 Indexed Amounts for Health Savings Accounts

Washington, DC--The Treasury Department and Internal Revenue Service today issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs. These amounts have been indexed for cost-of-living adjustments for 2009 and are included in Revenue Procedure 2008-29, which announces changes in several indexed amounts for purposes of the federal income tax.

The new levels are as follows:

New Annual Contribution Levels for HSAs:

For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000.
For family coverage, the maximum annual HSA contribution is $5,950
Catch up contribution for individual who are 55 or older is increased by statute to $1,000 for 2009 and all years going forward.
Individuals who are eligible individuals on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contribution, if 55 or order by year end), regardless of the number of months the individual was an eligible individual in the year. For individuals who are no longer eligible individuals on that date, both HSA contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.

New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:

For 2009, the maximum annual out-of-pocket amounts for HDHP self-coverage increase to $5,800 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that $11,600

Minimum Deductible Amounts for HSA-Compatible HDHPs

For 2009, the minimum deductible for HDHPs increase to $1,150 for self-only coverage and $2,300 for family coverage

In addition, a fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.