For the 2011 tax year the IRS has opted to keep the HSA contribution maximums the same as they were for 2010. An Individual can contribute up to $3,050 and someone who is covering one or more dependents can contribute up to $6,150.
The annual catch up amount for individuals over the age of 55 and who are not enrolled in Medicare is $1,000 per person on the plan. However, if the person who is making the catch up contribution is not the primary subscriber on the plan he or she will need to open a separate HSA account to hold the funds. For more information on this please see U.S. Department of the Treasury HSA FAQ.
The most notable change to the 2011 HSA regulations have to do with the removal of over the counter (OTC) drugs as eligible expenses. Starting January 1, 2011 you may no longer use your HSA account to purchase common OTC medications like pain relievers, sleep aids, allergy and antihistamines, or acid relievers. The only exception to this rule is of your doctor has written a prescription for an OTC medication then it would still be considered an eligible expense.
If you have any questions regarding your HSA account or would like to find out more about HSA compatible Health Insurance plans please send us an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call us at 831.459.9140.