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Health Savings Accounts


HSA Calculator

NOTE: HSA legislation was changed in December 2006 (HR6111). Key changes that impact contributions include:
a) annual contribution limits are now based on actual IRS limits, not your plan deductible (in most cases, this means you will be able to contribute more),
b) your annual HSA contribution limit does not have to be pro-rated based upon months of HSA eligibility (note qualifiers below), and
c) your catch-up contribution does not have to be pro-rated based upon months of HSA eligibility.

It is ultimately your responsibility to ensure that 1) You are eligible to contribute to a HSA; and 2) You do not contribute more than your allowable limit.


Contribution Estimator

Instructions: Enter information in the boxes below. The estimator will then automatically calculate your maximum allowable contribution and estimated tax savings. The right hand column provides line-by-line instructions
Single or Family Coverage Select Single or Family HDHP coverage (Family is defined as > 1 person covered).
What is the first full month when you will be able to make HSA contributions This is most often the same as the start of the HDHP with one exception: If you are participating in a full healthcare FSA in 2006, have unspent funds as of 12/31/2006 and your employer supports the 2 1/2 month extension of the full healthcare FSA (the "grace period"), you are not allowed to make HSA contributions until April. 
Allowable Base Contribution: This is the baseline contribution allowed into your HSA. However, there are two other areas to consider.
Catch-Up Contributions:
Date of Birth (mm/dd/yyyy). Requires a four-digit year. Enter your date of birth (mm/dd/yyyy). HSA rules allow a HSA owner who is at least 55 years old (and not enrolled in Medicare) to make additional "catch-up" contributions into their HSA. The allowable contribution for an individual who was 55 by 12/31/07 is $800. 
Allowable Catch-up Contribution This is the catchup contribution you can add to your base contribution.
Maximum Annual Contribution Limit: Maximum annual contribution for 2007 from all sources.
Your Employer Contributions (if applicable): Enter the amount that your employer is going to contribute to your HSA during 2007. If you employer is not making any contributions into your HSA, leave this box blank.  Note:  If you sign up for an HSA mid-year, your employer may prorate contributions. 
Your Maximum Annual Contribution Limit: This is the maximum contribution that you are permitted to make into your HSA during 2007, either through payroll contributions or additional deposits. You may contribute less than this amount, but exceeding this amount can result in IRS penalties. 

Tax Savings Estimator for 2007

Will you make the maximum contribution from above? If you say yes, the maximum contribution will automatically carry over to the Tax Savings Estimator.
If no, how much will you contribute for 2006? The amount you enter must be less than the Maximum Annual Contribution Limit.
Enter your estimated federal tax income rate Your marginal federal income tax rate (25% is used as a default)
Enter your estimated state income tax rate (if applicable) Your marginal state income tax rate (0% is used as a default). If your state does not provide a tax advantage to HSAs (Alabama, California, New Jersey, and Wisconsin) or does not have an income tax, the amount will be 0.
2007 Estimated Tax Savings* This is the estimated amount of money you saved in 2007 taxes. (* Assumes all payments from the HSA are used for qualified medical expenses or distributions are not made until age 65.) 
       
Please note: This worksheet is only a guide.  Actual amount may vary depending on your individual circumstances.  SHPS and its affiliates are not engaged in rendering tax advice.  Federal and State tax laws and regulations are subject to change.  If tax or legal advice is required, please seek the services of a qualified professional.

 

 

 

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