What is a Health Savings Account?
An HSA is a tax-favored Medical spending and savings account that is offered in conjunction with an HDHP to help pay for qualified medical expenses for you and your dependents AND/OR to save for retirement.
HSA Account Advantages:
- Owned by the employee
- Funds roll over and accumulate
- Funds may be invested (balances over $1,000)
- No claims/receipts required for reimbursement
- Higher annual maximum contribution
- TRIPLE tax savings (tax free contributions, interest, and spending when funds are used on qualified expenses)
- You must be enrolled in the HDHP
- You must NOT be enrolled in Medicare
- You must be a U.S. resident
- You must NOT be covered by any other medical plan that is not HSA-compatible ($1,300 single/$2,600 family deductible)
- You must NOT be active military or have received veteran's benefits within the past 3 months
- You must NOT be enrolled in the Health Care FSA
Note: The HSA is NOT first dollar coverage
Unlike the FSA, funds are only available as they are contributed and NOT all at once at the beginning of the plan year. However, employees may contribute directly to their HSA outside of payroll deductions and use the contribution as a tax write-off.
|2018 Maximum Annual HSA Contributions|
|Individual (Age 55+)||$4,450|
|Family (Age 55+)||$7,900|