|What is a Health Savings Account?
||Health Savings Accounts allow members to set aside
money for future medical expenses. There are certain tax advantages to HSAs, e.g contributions are
tax deductible and earn interest tax free until
withdrawn. Withdrawn funds used to pay for "qualified
medical expenses" remain tax free
|What is a High Deductible Health Plan (HDHP)?
||A health plan that satisfies both an annual deductible and a maximum out-of-pocket medical expense requirement. The annual minimum deductible is $1,350 for 2019 and the out-of-pocket expense cap cannot exceed $6,750 for 2019 for single coverage. The annual deductible must be at least $2,700 for 2019 and the out-of-pocket expense cap cannot exceed $13,500 for 2019 for family coverage. Individuals with single coverage may contribute up to $3,500 in 2019 and individuals with family coverage may contribute up to $7,000 in 2019. Eligible individuals that are age 55 and older may make HSA catch-up contributions up to $1,000.
|Who is eligible to open an HSA?
||Any individual who is covered under a HDHP
and generally does not have coverage under another
non HDHP is eligible for an HSA.
The eligible individual can not be enrolled
in Medicare and is not eligible to be claimed as a
dependent on another individual's tax return.
|Are there income limits?
|Are there age limits?
||Contributions must stop once the HSA owner reaches
age 65. Contributions cannot be made beginning with
the month the eligible individual enrolls in Medicare.
|Who can contribute to an HSA?
||Any individual including an eligible individual's
employer may contribute to an HSA.
|Are there contribution limits?
||Individuals with single coverage may contribute up to
$3,500 in 2019 and individuals with family coverage
may contribute up to $7,000 in 2019.
Eligible individuals that are age 55 and older may make
HSA catch-up contributions up to $1,000.
|When are HSA assets available ?
||HSA assets are payable on demand. There are no
restrictions on when and how often an HSA owner
may take distributions from an HSA. Using checks
and debit cards are acceptable means of withdrawing
HSA assets from the account.
|How are distributions from an HSA taxed?
||Distributions from HSAs may be exempt from federal
income tax and penalties, depending on whether the
HSA owner has qualified medical expenses.
|Are there any "use it or lose it" provisions?
||No. HSAs roll over from year to year, and are fully
portable from one Custodian/Trustee to another.
|Are there reporting requirements?
||Yes, the HSA owner will file form 8889 annually to
report the amount of distributions used for qualified