Annual Limit on Deductible Contributions to Health Savings Account (HAS) Have Been Raised for 2010

The annual limit on deductible contributions for Health Savings Accounts (HSA) has been adjusted for inflation for 2010.  The limit for 2010 for an individual with self-only coverage through a high-deductible health plan (HDHP) has been raised from $3,000 to $3050, while the limit for an individual with family coverage will go from $5,950 to $6,150. The annual deductible for individual coverage under the HDHP must be at least $1,200 and at least $2,400 for family coverage.  The out-of-pocket expenses must also be capped at $5,950 for self-only coverage and $11,900 for family coverage. Points of Interest

• The more taxable income you make in 2009, the more taxes you will pay.

• Lowering taxable income by deferring income, accelerating deductions, giving to charity, and utilizing tax credits, results in lower tax liability.

• If you are considering beginning estate planning, keep in mind that you have until December 31 to take advantage of 2009’s gift exemption of $13,000.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors