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Get Your Free Insurance Quote Below:2005 Tax Limits for Health Savings
Accounts and Medical Savings Accounts (ContentDesk) November 26, 2004 -- Freedom Benefits Association announces that for calendar year 2005, the maximum individual contribution to a health savings account is raised to $2,650 to account for inflation. The contributions for family coverage and those who are covered less than 365 days are calculated as a percentage of the individual maximum.Insurance plans that enable qualification for a health savings account will also change in 2005 to account for inflation. In 2005, the limit on maximum policy owner expenses may be no more than $5,100 for single coverage or $10,200 for family coverage. Most health insurance plans still do not state maximum policyholder expenses as a single number and therefore do not meet the federal requirement. A growing number of health insurance companies have announced plans to launch a qualifying health insurance plan in 2005 or 2006.The limits for medical savings accounts (the predecessor of health savings accounts) are also updated for 2005. Individual coverage must have a deductible between $1,750 and $2,650 with a maximum out-of-pocket expense of $3,500. Family coverage under a medical savings account must have a deductible between $3,550 and $5,250 with a maximum out-of-pocket expense of $6,450. Freedom Benefits manages HealthSavingsAccount-HSA.com that includes a comprehensive FAQ on health savings accounts and enrollment forms for the nation's most popular providers of these accounts. All health savings accounts offered by Freedom Benefits Association at www.FreedomBenefits.org will automatically be updated with the new limits. The FAQs and enrollment forms will be also updated with the 2005 tax laws.
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