|
HSAs: Catch-Up Contribution Special Rules for Those Over 55
To allow older taxpayers to “catch up,” the current law allows HSA participants to stretch their contribution limit by an additional $600 in 2005. This means that if you are over 55 and have a $1,000 deductible, your legal contribution may be $1,600 for the tax year. Under current law, the “catch-up” amount will increase $100 per year (the catch-up amount will be $700 in 2006) until it reaches an additional $1,000 per tax year by 2009 and there after.
These additional amounts must also be pro-rated, in the same way any other contribution would be, if you participate in the HSA program for only part of the year. |
