HSAFAQ

HSA Frequently Asked Questions What is a Health Savings Account (HSA)? An HSA is a tax favored account used in conjunction with an HSA-compatible health plan. The funds in the account are used to pay for IRS-qualified healthcare expenses such as services applied to the deductible, dental, vision and more. Who can get an HSA? Any eligible individual that: • Is covered by an HSA-compatible health plan. • Is not covered by other health insurance (except certain types of limited coverage). • Is not enrolled in Medicare. • Is not claimed as a dependent on someone else’s tax return. – Children cannot establish an HSA. – Eligible spouses can establish their own HSA. How much can I contribute annually to an HSA? Visit hsabank.com/irs-guidelines to view the annual HSA contribution limits. Catch-Up contributions Accountholders who meet the qualifications below are eligible to make an HSA catch-up contribution of $1,000. • Health Savings accountholder. • Age 55 or older (regardless of when in the year an accountholder turns 55). • Not enrolled in Medicare (if an accountholder enrolls in Medicare mid-year, catch-up contributions should be prorated). Spouses who are 55 or older and covered under the accountholder’s healthcare insurance can also make a catch-up contribution into a separate HSA in their own name. Can any high-deductible health insurance policy qualify for an HSA? It can be a health maintenance organization (HMO), preferred provider option (PPO), or indemnity plan as long as it meets the IRS requirements. Your insurance company will determine if the policy is an HSA-compatible health plan. Who can make contributions? Contributions can come from employers, the accountholder, or third parties. The combined contribution amount is subject to the IRS contribution limits. Are there income restrictions? There are no income restrictions for opening or contributing to an HSA.