Health Savings Accounts
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are numerous advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.
Who Can Have HSA
Any adult can contribute to an HSA if they:
- Have coverage under the an HSA-qualified "high deductible health plan" (HDHP)
- Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or Lont term care insurance are permitted).
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on someone else's tax return.
Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. If you make contributions, you can deduct them when completing your federal income tax return (even if you do not itemize deductions). Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it pay for medical expenses tax-free.
Have you opened your HSA?
Click on the link below to get started today!
Individual Online Enrollment (IOE) : For individuals not tied to an employer that would like to enroll. This link allows you to enroll online as well as takes you to a downloadable application for those who prefer paper.
Have additional questions? Contact us.
Save in Premium and Taxes
- Deposits and earnings in the HSA are not taxed.
- The earnings on the money is not taxed.
- Use of the HSA money is tax free for qualified health expenses, as defined by the IRS.
- No "use it or lose it" provision, such as with a Flexible Spending Account (FSA).
US Dept of Treasury
You Own the Money in the Savings Account
- Money in the HSA is owned by the individual, and is taken with them, when leaving an employer.
- Funds can be used for COBRA premium or for insurance while unemployed.
- Funds can be used for Long-Term Care Insurance premium.
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