Health Savings Account (HSA)
WHAT IS A HEALTH SAVINGS ACCOUNT (HSA)? An HSA is an individually-owned, personal health care savings account that you can use to pay out-of-pocket health care expenses with pre-tax dollars. Your contributions are tax-free, and the money remains in the account for you to spend on eligible expenses no matter where you work or how long it stays in the account.
2020 IRS CONTRIBUTION MAXIMUMS
An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance premiums can therefore be put into the Health Savings Account.
COVERAGE LEVEL
Employee Only
$3,550
YOUR HSA IS AN INDIVIDUALLY OWNED ACCOUNT • You own and administer your HSA.
Employee + Spouse Employee + Child(ren) Family Catch-Up Contribution (Individuals 55 or Older)
$7,100
• You determine how much you will contribute to your account and when to use the money to pay for eligible health care expenses.
$1,000
For more information on HSA Accounts visit https://www.irs.gov/pub/irs-pdf/p969.pdf or scan the QR Code with your phone. YOU ARE ELIGIBLE TO OPEN AND FUND AN HSA IF YOU MEET ALL OF THE CRITERIA BELOW: • You are enrolled in a HDHP/HSA plan. • You are not covered by another health plan (unless it is an HSA-qualified plan), healthcare FSA (including a spouse’s healthcare FSA), or health reimbursement arrangement. • You are not eligible to be claimed as a dependent on someone else’s tax return. • You are not enrolled in Medicare or TRICARE for Life. WHAT IS A HIGH DEDUCTIBLE HEALTH PLAN (HDHP)? You must have an HDHP if you want to open an HSA or keep contributing to an existing HSA. The HDHP is usually a less expensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your “deductible”) but will generally cover you after that. Of course, your HSA is available to help you pay for the expenses your plan does not cover. • You can change your contribution during the plan year without a qualifying event (allowed one time per month). • Like a bank account, you must maintain a balance in order to pay for eligible healthcare expenses. • Keep all receipts for tax documentation. • An HSA allows you to save and “roll over” money from year to year. • The money in the account is always yours, even if you change health plans or jobs. • There are no vesting requirements or forfeiture provisions.
Page | 14
Made with FlippingBook - Online magazine maker