Annual Contribution Levels for Health Savings Accounts (HSA's): For 2007, the maximum annual HSA contribution for an eligible individual with self-only coverage is $2,850. For family coverage the maximum annual HSA contribution is $5,650. The maximum contribution is the lesser of the indexed amount or the deductible of the High Deductible Health Plan (HDHP). HSA contributions apply pro-rata for the number of months of the calendar year that a taxpayer is eligible. Catch up contributions for individuals who are 55 or older are $800 for 2007. Catch up contributions apply pro-rata based on the number of months of the year a taxpayer is age 55 and over.

New Amounts for Out-of-Pocket Spending on HSA-Compatible High Deductible Health Plans (HDHPs): The maximum annual out-of-pocket amount for HDHP self-coverage increases to $5,500 and the maximum annual out-of-pocket amount for HDHP family coverage is $11,000.

Request a 40-page HSA Basics booklet created by the US Department of the Treasury.

Consult with your tax advisor before making any contributions.