In 2008, new HSA legislation was enacted to continue making the HSA more compelling for you and your employees.  Highlights of the 2008 changes include:

	Annual Contribution Maximums Increased
		Detail of the Changes The 2009 annual HSA contribution maximum for individual HDHP coverage is $3,000.00.  The 2009 annual HSA contribution maximum for family HDHP coverage is $5,950.00.  The HDHP deductible no longer has any bearing on the annual HSA contribution maximum. What This Means for You The change related to contribution amounts means you can deposit more money into your HSA and reduces the chance that you will use all of your HSA funds before you reach out of pocket maximums.  This change also means that HSA savers can accumulate greater balances in their HSA.
	FSA and HRA Transfers Into an HSA
		Detail of the Changes For the next five (5) years an employer can make a one-time transfer of FSA and HRA balances into an HSA.  The amount of the transfer cannot exceed the balance of the FSA/HRA as of September 21, 2006, the employer must make this transfer option available to all employees, and the employee who elects this transfer must maintain an HSA-eligible HDHP for a period of 12 months after the transfer. What This Means for You This one-time transfer helps you transition from your FSA or HRA, where a use-it or lose-it rule applies to all balances, to an HSA, where unused balances rollover from year to year and offer a host of other benefits for individuals and families.
	HSA Contributions for Mid-Year Enrollees
		Detail of the Changes Anyone enrolling in an HSA-eligible HDHP at any point during the calendar year can now contribute the annual contribution maximum ($3,000 for individual plans and $5,950 for family plans) to their HSA.  You must maintain your HSA-eligible HDHP for a period of 12 months after your initial contribution is made. What This Means for You Regardless of whether you enroll in an HSA-eligible HDHP in February or September, you now get the benefit of contributing the annual maximum.
	IRA Transfer Into an HSA
		Detail of the Changes An individual can make a one-time, irrevocable transfer from an IRA to an HSA.  The transfer does count against the annual contribution maximum and requires the individual to be in an HSA-eligible HDHP for a period of 12 months after this transfer is complete. What This Means for You While this transfer does not offer an additional tax deduction, it does help individuals with IRA balances get a head-start on contributing to their HSA.
	Greater Contribution Limits for Lower Paid Employees
		Detail of the Changes Employers can now make greater HSA contributions to those employees that earn less than $100,000 annually.  However, if the employer elects to exercise this right, they must make the same contribution amount to all employees who earn less than $100,000 annually. What This Means for You Employers can spur HSA usage through this exception to comparability.  Additionally, this change benefits employers who currently don't make HSA contributions through a cafeteria plan.
	FSA Grace Period No Longer Impacts HSA Eligibility
		Detail of the Changes If an individual begins a year with a zero balance in their FSA, or transfers the balance of their FSA to an HSA, the grace period coverage will not have any impact on the individual's ability to make an HSA contribution. What This Means for You Prior to this change, any individual whose employer took advantage of the grace period was ineligible to make an HSA contribution as they were deemed as having additional coverage.

The summaries above are for illustrative purposes only; your actual tax and health care costs will vary. Comerica does not provide tax or legal advice and cannot be held liable for the accuracy of any of the content provided on this site. Please check with your tax professional, CPA or lawyer prior to acting on any advice found here.