IRS Issues 2009 HSA Deduction Limits
WASHINGTON -- The IRS has published the 2009 inflation-adjusted deduction limits for health savings accounts
For calendar year 2009, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,000. For 2009, the annual limitation on deductions for an individual with family cover- age under a high-deductible health plan is $5,950.
For 2009, a high-deductible health plan is defined as a health plan with an annual deductible that is not less than $1,150 for self-only coverage, or $2,300 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,800 for self-only coverage or $11,600 for family coverage.
Arsenal Credit Union Counsels
Its Employees on Health Issues
ST. LOUIS -- Arsenal Credit Union is demonstrating its employee appreciation by shining a light on wellness.
The credit union recently spent two weeks teaching staffers ways to become healthier.
Kicking off with a presentation on overall health, the staff could then choose to go to several different sessions on topics ranging from making healthy lifestyle choices and smart fast food decisions to relaxation techniques and aromatherapy. Employees were also treated to free 10-minute massages on Fridays.
"Both the credit union and its staff benefit from healthier employees through reduced absences and improved morale," says Arsenal CU Assistant Vice President of Human Resources Lori Crutchley. "Our employees enjoyed the change of pace, since many of them are trying to get in better shape anyway, and the lessons learned will last a lot longer than one or two weeks."
In addition to education, employees received a variety of health-themed items, including Subway gift cards, baked chips, trail mix, muffins, water bottles, and pedometers. To keep the focus on health, Arsenal CU added a new wellness section on the employee intranet.
Wells Fargo Reports $264
Million in HSA Deposits
MINNEAPOLIS -- Wells Fargo & Company has reported that its health savings account deposits have increased 41% year to date, totaling more than a quarter-billion dollars for the first time.
Wells Fargo Health Benefit Services has found that more than 150,000 account holders - many who took advantage of higher 2007 contribution limits before the April 15 deadline - now hold $264 million in HSA deposits.
"Tax law changes helped consumers understand contribution limits and really drove these large deposit increases," said Jose Becquer, head of Wells Fargo Health Benefit Services. "Now our customers feel like they can use an HSA to meet today's health care needs and prepare for tomorrow."
HSAs, created as part of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, help individuals manage their health care spending and save pretax dollars for future medical expenses. Accounts are open to consumers enrolled in a high-deductible health plan, either individually or through employers.
Wells Fargo Health Benefit Services, a division of Wells Fargo Bank, N.A., is a provider of health and wealth management solutions for companies across the nation. With a national service center in Salt Lake City, HBS began offering HSAs in 2004.
IRS Notice Offers Additional Details on Procedures for IRA Transfer to HSA
WASHINGTON -- The IRS has provided additional guidance on health savings account-related provisions of the Health Opportunity Patient Empowerment Act of 2006.
Notice 2008-52 provides additional details on determining maximum annual HSA contributions in light of the HOPE Act statutory changes and further clarification on contributions that become taxable as a result of a taxpayer not remaining HSA contribution-eligible during the testing period noting that they are not considered excesses upon which the 6% penalty of Internal Revenue Code Sec. 4973 would be assessed.
In Notice 2008-51, the IRS details guidance to implement a 2006 amendment to health savings account legislation that provides plans the option to allow employees to start an HSA by making a one-time tax-free transfer of individual retirement account funds.
The qualified HSA funding distribution detailed in IRC Sec. 223 is a one-time transfer from an individual's IRA to his or her HSA that is generally is excludable from gross income and is not subject to the 10% additional tax under IRC Sec. 72(t). The tax advantages are available only if the individual making the transfer remains an eligible individual during the entire "testing period," which is defined as a period "beginning with the month in which the qualified HSA funding distribution is contributed to a health savings account and ending on the last day of the 12th month following such month."
The amount contributed to the HSA through a qualified HSA funding distribution is not allowed as a deduction and counts against the individual's maximum annual HSA contribution for the taxable year of the distribution.
Only one qualified HSA funding distribution is allowed during the lifetime of an individual. If, however, the distribution occurs when the individual has self-only high deductible health plan coverage, and later in the same taxable year the individual has family HDHP coverage, the individual is allowed a second qualified HSA funding distribution in that taxable year. Notices 2008-51 and 2008-52 are available at: