The annual limit on deductible contributions for Health Savings Accounts (HSA) has been adjusted for inflation for 2010. The limit for 2010 for an individual with self-only coverage through a high-deductible health plan (HDHP) has been raised from $3,000 to $3050, while the limit for an individual with family coverage will go from $5,950 to $6,150.
The annual deductible for individual coverage under the HDHP must be at least $1,200 and at least $2,400 for family coverage. The out-of-pocket expenses must also be capped at $5,950 for self-only coverage and $11,900 for family coverage.
Points of Interest
- The more taxable income you make in 2009, the more taxes you will pay.
- Lowering taxable income by deferring income, accelerating deductions, giving to charity, and utilizing tax credits, results in lower tax liability.
- If you are considering beginning estate planning, keep in mind that you have until December 31 to take advantage of 2009’s gift exemption of $13,000.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors