Health Savings Account Rules

 

Health Savings Account Rules 2011


For 2011 there are only two substantial changes in the Health Savings Account (HSA) Rules. The first one changes the rules for purchasing Over The Counter (OTC) Drugs using your HSA. Starting January 1, 2011 you will now need a prescription from your physcian in order to pay for them with funds from your health savings account.

 

Prior to 1/1/2001 HSA Funds could be used to purchase OTC Drugs such as:

Ibuprophen
Cold Medicines
Cough Syrup
Eye Drops
and hundreds of other OTC drugs.

Starting in January 2011 however, these "non-prescription" drugs will no longer be eligible to purchase using funds from your HSA. In other words, this change will make the purchase of all OTC medications more expensive because you will no longer be able to use pre-tax dollars.

Certain OTC products will still be eligible if prescrbed by a physician, click here for more information.


Non-Medical Withdrawal Penalty Changes

The second HSA rule change is in the withdrawal penalty for using HSA Funds for non-eligible purposes before age 65. The penalty has always been 10% but effective January 1, 2011 increased to 20%. The penalty does not apply once the owner of the HSA turns 65 years old.

Please visit our home page for all other Health Savings Account Rules.

   


Health Savings Account Contribution Limits 2011


Contribution Limit increases are based on the rate of inflation. Due to the lack of inflation last year the HSA contribution limits were left unchanged from 2010.

According to the new 2011 federal guidelines the maximum contribution for the 2011 calendar year (contributions can be made until 4/15/2012) by a single individual remains at $3,050 and the limit for a family remains unchanged at $6,150. This means that a family can contribute a maximum of $512.50 per month to their HSA Account and it would be $254.16 for an individual.


 

Please use any of the links below for further information regarding HSA Rules:

Health Savings Account Contribution Limits
Health Savings Account Eligibility
Health Savings Account Investments
Health Savings Account Qualified Expenses
How To Open A Health Savings Account
Health Savings Account Withdrawal Rules