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The Internal Revenue Service announced the new HSA contribution limits for 2013.

The HSA contribution limits for 2013 will be:

*A participant over 55 years of age is allowed to contribute an additional $1,000.

In order to contribute to an HSA, you must have a qualified High Deductible Health Plan, also known as HDHP. The current definition of a qualified HDHP for 2013 (unchanged from 2012) is:

Individuals – High Deductible Health Plan

Families – High Deductible Health Plan

The Benefits of HSA Contributions

Most health insurance plans are moving to higher deductibles to save costs. If your plan meets the HDHP requirements, you are eligible to contribute to a HSA.

An HSA, is a a tax-favored savings account to help pay for a high deductible.  If you don’t reach the deductible, any money left in your savings account stays in that account and is invested tax deferred.

More specifically, the benefits of a HSA are:

If you think you may benefit from having a Health Savings Account, let us know and we’ll put you in touch with someone who can help you get started.