Health Savings
Accounts (HSA) are a way for medical expenses to be paid through contributions made by an employer or employee.
Minimum Amount
There is no minimum monthly amount required once an individual has made the required initial contribution to open the account. This amount is set by the institution where the HSA is opened.
Maximum Amount
The maximum annual contribution that can be made to an HSA as of 2010 is $3,050 for an individual and $6,150 for a family.
Employer
A HSA can be funded by an employer and contributions made are tax deductible. Employers must make equal contributions to all employees. For example, each employee who works full-time and has a family plan must receive the same contribution amounts.
IRA
An individual is allowed to roll over funds to a HSA that come from an Individual Retirement Plan. This may only be done once.
Catch-Up
A HSA can be funded with an extra $1,000 a year by individuals who are age 55 and older. A married couple can each pay $1,000, if it is to separate accounts.
Cash
Lastly, funding for a Health Savings Account cannot be done with stocks or property. Contributions are required to be made in cash.
Tags: contributions made, Health Savings