How to Set My HSA Contributions

A health savings account, or HSA, allows consumers to take charge of their health care spending by setting aside pre-tax dollars to pay medical costs not covered by their insurance. The HSA is combined with a high deductible health plan, also known as an HDHP. By accepting a higher deductible, individuals can enjoy lower monthly premiums, and the HSA dollars help them absorb the costs associated with that higher deductible.

Things You'll Need

• HSA statement

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Instructions

• 1

  Check the details of your health care plan and make sure it meets the IRS definition of a high deductible health plan. For 2010, the plan must have a deductible of at least $1,200 for individual coverage and $2,400 for family coverage. These limits change from time to time, so always check with your health insurance provider or accountant before making your yearly HSA contribution.

• 2

  Find the maximum contribution for your HSA plan. For 2010 the maximum you can contribute to the HSA is $3,050 for single coverage and $6,150 if you have a family plan. Determine how you want to make your contribution. You can save up throughout the year and make the contribution in one lump sum, or you can set up periodic investments with the bank or mutual fund company administering the HSA.

• 3

  Contact the administrator of your HSA if you wish to set up periodic payments to fund the account. You can find the contact information on the HSA statements you receive. Inform the representative that you wish to set up recurring transfers to your HSA.

• 4

  Complete the paperwork needed to establish those recurring transfers. You will need to provide your bank routing number and account number to have money transferred from your checking or savings account. Indicate how much you want to have withdrawn each month, but be sure those monthly contributions do not exceed the maximum allowable HSA contribution.

• 5

  Check your bank statements to make sure the money is transferred properly. Contact your bank and the administrator of the HSA if there are any discrepancies.