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WoodTrust.com > Consumer Banking > Health Savings Accounts
 
Determining Your Contribution

Effective January 1, 2007, the Tax Relief and Health Care Act of 2006 allows individuals who become eligible after the beginning of the year to make the maximum annual contribution ($3,100* for single coverage or $6,200* for family coverage). To be eligible for a full-year contribution, however, individuals must remain HSA-eligible throughout a 13-month “testing period,” which runs from the first day of the last month of the initial eligibility year through the end of the 12-month period following that month. If eligibility requirements are not met for the entire testing period, they must prorate the contribution limit for the number of months eligible. They must include ineligible contributions in gross income and pay a 10 percent penalty on the ineligible amount. Contributions can be made as late as April 15 of the following year.

* 2012 limits, adjusted annually for inflation.


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