Personal Contributions

• The contribution limit for an individual in 2009 is $3,000. For a family HSA, the contribution limit is $5,950. People 55 and older may add $1,000 to that amount annually as a "catch-up" contribution.
  
  

Employer Contributions

• Your employer can make contributions on your behalf, as long as the total amount contributed does not exceed the annual limit.
  
  

Partial-Year Rules

• If you are not covered by an HDHP for an entire tax year, the rules change. If you are covered by an HDHP on the first day of the last month of the tax year, you are allowed to contribute the full annual amount. If you were covered by an HDHP for part of the tax year, but not on the first day of the last month, then the amount you can contribute in that year is pro-rated by the number of months in which you were covered by an HDHP.
  
  

Tax Benefits

• Personal contributions to an HSA may be deducted from your gross income before taxes are paid.
  
  

Warning

• If you are on a tight budget, calculate how much you need to contribute to your HSA carefully. If you need to access your money for anything other than qualified medical expenses, you will have to pay taxes and a 10 percent penalty, too.