What you need to know about HSAs and FSAs in 2012

//What you need to know about HSAs and FSAs in 2012

2012 Cheat Sheets: HSA and FSA

What you need to know about Health Savings Accounts and Flexible Spending Accounts in 2012

Health Savings Account:

  • A health savings account (HSA) is a tax-advantaged medical savings account that helps participants save money for medical expenses. The funds in an HSA roll over from year to year if unused, with annual maximums outlined by the IRS.
  • More info here

HSA in 2012:

HSA Contribution Limits

  • Individual (SELF-ONLY HDHP): $3,100 ($50 increase from 2012)
  • Family: $6,250 ($100 increase from 2011)

Limit for catch-up contributions (for people over age 55):

  • $1,000 (unchanged from 2011)

HDHP Minimum Required Deductibles

  • Self-only: $1,200
  • Family: $2,400

HDHP Minimum Required Deductibles

  • Self-only: $6,050 ($100 increase from 2011)
  • Family: $12,100 ($200 increase from 2011)

What changed in 2011:

  • Effective Jan.1, 2011, expenses for over-the-counter medicines, with the exception of insulin, will not be eligible for reimbursement under a health FSA, HRA or HSA without prescription.
  • Penalty for using HSA funds for ineligible expenses increased from 10% to 20%.

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Flexible Spending Account:

  • A flexible spending account (FSA) is an employer-sponsored plan that allows you to deposit money tax-free from your paycheck into a special account.  You designate the amount to contribute, up to the maximum. Funds cannot be rolled over to the following year.
  • More info here

FSA in 2012:

FSA Contribution Limits

  • 2012 is the last year that there are no limits. Although there is no limited mandated by law, the plan must prescribe either a maximum dollar amount or percentage that can be contributed to the FSA.

What changed in 2011:

  • Beginning in 2011, FSA funds can no longer be used for over-the-counter medicines unless prescribed be a doctor.

What to expect in 2013:

  • FSA contributions will be limited to $2,500 each year with annual inflation increases
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2022-02-23T12:49:11-05:00 Employee Benefits|