We've received a lot of email inquiries on recent legislation regarding Health Savings Accounts (HSA).  Make sure to read some of the recent posts on our site but here's another quick recap:

HSA contribution limits did change in 2007.

• $2,850 for individual coverage
• $5,650 for family coverage
• If you're above age 55 an additional $800 catch-up provision

The recent law also allows a one time 'rollover" or contribution from an IRA to a HSA account.  The contribution must be made in a direct trustee-to-trustee transfer.  (Your IRA provider needs to send the money directly.)  The transfer is limited to the maximum HSA contribution for the year and is not allowed as a deduction.

I just learned from this recent article the one-time funding from an IRA account is called a qualified health savings account funding distribution, or QHSAFD.   Financial planner Natalie Choate provides a detailed look at this one time IRA transfer at CBSMarketWatch.