Contributions to an HSA can be made by individuals, employers and other third parties.
Contributions you make to your FlexHSA are tax-deductible. Employer contributions are excluded from employees’ income and are not subject to withholding for income tax.
Total contributions for 2007 are limited to $2,850/single and $5,650/family.
An excise tax of 6% is imposed for all contributions made by you or your employer that are in excess of the contribution limits.
Contributions made to an HSA belong exclusively to the account holder.
Contributions must be made in cash (rollovers and transfers may be made in-kind).
Earnings accumulate tax-deferred and do not have to be included in gross income while held in an HSA.
Once an individual enrolls in Medicare, contributions must stop.
However, the money may remain in your HSA to pay medical expenses tax-free.
An additional “catch-up” contribution ($900 in 2008) is available to individuals age 55 and over who are not enrolled in Medicare.
