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Last Call for HSA Contributions
With a health savings account (HSA), you can deduct contributions made in conjunction with a qualifying high-deductible health insurance plan. Distributions from the HSA are tax-free to the extent they are used to pay for qualified medical expenses.
For 2008, the maximum allowable contribution is generally limited to $2,900 for self coverage and $5,800 for family coverage.
New tax benefit: In a new ruling, the IRS says that you can fund an HSA in full as long as the HSA is established by December 1. In other words, you can still contribute the maximum amount to an HSA for 2008. Any unused amount may be carried over to the following year.
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