June 15th, 2011 – Health Savings Accounts (HSAs) can be a great way to save money on a tax advantaged basis. In short, if you’re eligible, they allow you to use pre-tax money to pay for medical expenses.
Each year HSA Contribution Limits are updated based on the inflation rate of the previous year. For 2012 the HSA Contribution Limits were raised about 1.63% based on the increase of the Consumer Price Index (CPI).
As such, for 2012 the IRS announced that the contribution limit for an individual increased $50 to $3,100 and the limit for families increased $100 to $6,250. The catch-up provision for those age 55+ remains at $1000 and is not expected to change in future years.
Follow the link for more information on Health Savings Accounts.