HSA CASE STUDIES

To make this a bit easier to understand, here are a few case studies of an HSA in action:

Case Study One : Self-Employed

Rob Johnson is self-employed.  And, because of his self-employed status, the only health insurance he can afford for his family is a family policy with a $5,700 per calendar year deductible.

With this high deductible health plan, he saves money on premiums.  And the money he saves can be used to fund his HSA. With an HSA, he can contribute up to $5,650 for 2007.  Since Rob is in the 28% federal tax bracket, his tax bill goes down by $1,582!  

Case Study Two : Under 55 Annual Contribution

Susan Freidman is under age 55 and is enrolled in a $1,200 deductible health plan with single coverage that runs January 1 - December 31, 2007.  Under the new annual contribution rule, she may contribute $2,850 to her HSA in 2007 instead of $1,200 (the maximum contribution amount under the prior rule). The result is a $1,650 increase in her HSA contribution amount and a savings for Susan of almost $500 in taxes!