Changes to HSA Rules
Legislation signed into law in December eases the use of health savings accounts. Previously, HSA participants could contribute only the amount they were required to pay out of pocket before their high-deductible health insurance policies kicked in. Under the new law, participants can contribute up to $2,700 for individual accounts and $5,450 for family accounts. The measure also allows employers to contribute more to the HSA accounts of non-highly compensated workers, and allows a one-time, tax-free rollover of individual retirement account funds into an HSA. “These provisions will help many Americans find more affordable and tax-preferred ways to pay for health care costs,” said James A. Klein, president of the American Benefits Council, an organization of large employers and health plan administrators.