Being self-employed and not covered on anyone else’s insurance policy, I opted to get a high-deductible insurance plan that qualifies for a Health Savings Account, or HSA.  An HSA is similar to an IRA in that the amount you put into the account each year are tax deductible.  Unlike company pre-tax savings plans where you have to “use it or lose it” each calendar year, you can build a nice medical emergency fund if you don’t spend everything you put in.  So it’s a double bonus – peace of mind and tax savings.

Each January I add to my account for the year and I just finished my search to see how much I could contribute.  There is no change from 2010 so here is the deal.

2011 HSA Contribution Limits

  • HSA holders can choose to save up to $3,050 for an individual and $6,150 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,050 for an individual and $7,150 for a family) – and these contributions are 100% tax deductible from gross income.
  • Minimum annual deductibles are $1,200 for self-only coverage or $2,400 for family coverage.
  • Annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $5,950 for self-only coverage and $11,900 for family coverage.

For more information about HSA’s and the insurance plans that work with them, head over to – it’s a site by UnitedHealthcare that does a nice job explaining the whole thing.  (I have no affiliation with the site or the company – just found it clear and understandable.  Most insurance companies offer HSA eligible plans.  Not all banks offer the accounts so you need to do some leg-work.  I have mine at US Bank – much more user friendly than Wells Fargo where I was initially.  Again – no affiliation – just my personal experience!)

Here’s to a creative business and medical coverage and savings if you need it!

– Tara Reed