Q. I am new to the Health Savings Account world, having elected this option this calendar year.  I am confused about what I can have deducted and what my limits are within this year.  I currently have deducted $4400 and my company has funded $268.  I am over 50, are there any differences in terms of limits?  What are the top limit amounts you can put into your HSA in 2008 and 2009?

A. It would be nice if all pre-tax investment and healthcare alternatives actually made sense.  In the case of the HSA, it is important to remember that there are two parts to these types of plans.  First, there is a high-deductible health plan.  For 2008, your deductible must be at least $1,100 for self-only coverage or $2,200 for family coverage, with total out-of-pocket amounts no more than $5,600 for self-only coverage or $11,200 for family coverage.

The other part of HSA coverage is the ability to create a pre-tax savings account for paying your medical expenses.  Many vendors offer plans that provide debit cards so you can access the funds in your savings account.  Generally employers pay a small fee for this service, but sometimes employees are required to pay.  Check with your employer for details.  For 2008, the maximum contribution to the savings portion of an HSA plan is $2,900 for self-only coverage or $5,800 if you have family coverage under a high deductible
health plan.  If you are over 55, you can increase these maximum contribution amounts by $900.  The limits apply to total contributions, employer and employee.  There are penalties for contributing too much, so keep an eye on this item in your paystub if your employer contributes.  However, unlike other medical savings plans, your HSA savings account is portable and does not follow the “use it or lose it” principle.

The 2009 numbers were recently released and are as follows: The maximum contribution to the savings portion of an HSA plan is $3,000 for self-only coverage or $5,950 if you have family coverage under a high deductible health plan.  If you are over 55, you can increase these maximum contribution amounts by $1000.

The U.S. Treasury Department has a page dedicated to HSAs here.