HSA contributions for 2012 – It’s not too late !

If you owned an HSA eligible high deductible health insurance plan (HDHP) in 2012, don’t forget to make your Health Savings Account contribution for the 2012 tax year, by April 15th 2013, to save on your taxes owed or to get a larger tax refund.   In addition to the tax benefits, it also forces you to save for your future medical, dental and vision expenses.  2012 contribution maximums are $3100 for an individual, and $6250 for a family (2 or more).   Remember, you must pro-rate the amount based on the total number of FULL months you owned the HDHP.  For example, if the effective date of your HDHP policy was Feb 15th, you can contribute 10/12ths of the numbers listed above, or 10 full months of contributions.  Do not over contribute to an HSA, as the headache of pulling the money out and calculating the penalties are not worth the effort of getting the extra tax deduction.  If you are over age 55, you can make an extra $1000 catch up contribution, pro-rated by the number of full months you were over age 55.  If you are a couple over age 55, then you can each make a $1000 catch up contribution, but the money must be placed in TWO separate HSA accounts in each of your names.

If your employer contributed on your behalf, a portion of the maximum allowed, be sure to reduce your contribution by that amount without going over the limits listed above.

By the way, 2013 HSA contributions are $3250 for individuals and $6450 for families.  Start saving now…..

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