HEALTH SAVINGS ACCOUNT Contribution Amounts Year Contribution Limit Under Age 55 Single Coverage Contribution Limit Under Age 55 Family Coverage Additional Contribution Age 55 And Over 2011 $3,050 $6,150 $1000   2012   $3,100   $6,250   $1000               High Deductible Health Plan (HDHP) Definition is as follows:  2011/2012   Single HDHP minimum deductible $1,200 2011/2012   Family HDHP minimum deductible $2,400  Effective 2011: *  Over-the-counter drugs are only a qualified expense with a doctor's prescription. *  Penalty for non-qualified medical expense withdrawals increases to 20%.

Pension Protection Act of 2006 (effective August 17, 2006) Beginning January 1, 2007,  nonspouse beneficiaries of a Qualified Employer Plan are aloowed to do a "direct" rollover into an Inherited IRA at a financial institution if the plan allows. They must begin taking single life expectancy payouts death distributions beginning the year after the owner's death unless the five year option is available to them. Beginning January 1, 2008, both pre-tax and after-tax contributions in a Qualified Employer Plan are able to be rolled into a Roth IRA regardless of income limits.  Pre-tax contributions rolled into the Roth will be includible in income the year they are rolled over. Qualified reservists called to active duty beginning on 9/11/01 and may take penalty-free withdrawals from their IRAs and have two years after discharge of active duty to roll the funds back in.  This expired in 12/2007 but was made permanent as part of the HEART Act of 2008. Many of the provisions of EGTRRA that were set to expire - including the Savers Tax Credit provision - are made permanent. HOPE Act - beginning in 2007, IRA participants may do a "once-in-a-lifetime" distribution from their IRAs to fund a regular contribution to a Health Savings Account.  This is reported as "premature - no exception" or 'normal" depending on the IRA accountholder's age.  The contribution into the HSA will be coded as a "regular contribution" and cannot exceed the HSA contribution limit for that year.  If coming from a Traditional, it will not be includible in income, and will not be allowed a line item tax deduction for that year.

Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) This act was signed into law in 2006 and eliminated the $100,000 modified adjusted gross income limit in 2010 for eligibility to convert or rollover to a Roth IRA. Effective 2010, all participants of qualified plans or Traditional IRA, SEP and SIMPLE IRAs (after 2 years of participation) are eligible to convert or rollover all or part of their plan to a Roth IRA - regardless of their income. Effective 2011, all pre-tax money rolled from a qualified plan to a Roth or converted from an IRA to a Roth will have to be claimed as income in year converted or rolled over. There are no tax breaks available after 2010. Coding Requirements:          From a Traditional to a Roth: If under age 59 ½: Distribution Coding: IRS Code 2 in box 7 of the 1099-R - Premature - Exception Applies (only if you know the funds are going from a Trad directly to Roth) Contribution Coding: Conversion Contribution (dollar amount shows up in Box 3 of the 5498) If over age 59 ½: Distribution Coding: IRS Code 7 in box 7 of the 1099-R - Normal Distribution Contribution Coding: Conversion Contribution (dollar amount shows up in Box 3 of the 5498) From an Employer Qualified Plan to a Roth: If under age 59 ½ and check is made payable to the plan participant:: Distribution Coding: IRS Code 1 in box 7 of the 1099-R - Premature - No Exception Contribution Coding: Rollover Contribution (dollar amount shows up in Box 2 of the 5498) If over age 59 ½ and check is made payable to the plan participant: Distribution Coding: IRS Code 7 in box 7 of the 1099-R - Normal Distribution Contribution Coding: Rollover Contribution (dollar amount shows up in Box 2 of the 5498) At any age if check is from a QP and made payable to the financial institution fbo the plan participant: Distribution Coding: IRS Code G in box 7 of the 1099-R - Direct Rollover Distribution Contribution Coding: Rollover Contribution (dollar amount shows up in Box 2 of the 5498)