Health Savings Account (HSA)
Your eligibility In order to open and fund an HSA, you must meet the following requirements: • You are enrolled in the company’s High Deductible Plan (HDHP) • Are not covered under another medical plan such as Medicare, Tricare or a spouse’s medical plan (not an HDHP) which provides similar coverage; and • Cannot be claimed as a dependent on another person’s insurance policy or tax return.
Qualified Health Care Expenses Each time you have a medical, dental or vision expense you decide if you want to pay with money from your HSA. “Qualified Medical Expenses” are determined by the US Treasury, 213(d) expenses, and detailed in IRS Publication 502. Some examples include but are not limited to:
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Expenses that apply toward your deductible
2023 IRS Calendar Year Contribution Limit
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Prescription expenses Contact lens fitting
Orthodontia • Acupuncture • Artificial teeth • Eye glasses
2023
If you cover just yourself on the plan:
$3,850 $7,750 $1,000
If you cover yourself and a spouse or dependents:
Age 55+ Catch-Up:
Whose Medical Expenses Can You Use Your HSA Funds on?
When You Can Begin Contributing You may begin funding your HSA when your medical HDHP benefits begin. You are able to contribute as little or as much (up to the IRS limit) as you wish out of each paycheck and this election may be changed at any time throughout the year. When You Cannot Contribute If you terminate HDHP medical plan coverage (or employment) with Community Action for Improvement you may no longer contribute to your HSA through the company’s payroll deduction. You own the HSA so your balance can be carried over year after year and the funds you contributed always belong to you.
Generally your:
• Legally married spouse. Domestic partners are not covered under the tax code. • Permanently and totally disabled dependent of any age. • Dependent under the age of 19
at the end of calendar year or a full-time student under the age of 24 at the end of the calendar year who also: Lived with you more than 1/2 the calendar year, and Didn’t provide over 1/2 his/her own support in the calendar year, and Didn’t file a joint tax return, other than to claim a refund
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Benefits of an HSA
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Tax Savings! An HSA provides triple tax savings: (1) tax deductions when you contribute to your account (2) tax-free investment earnings (3) tax-free withdrawals for qualified medical expenses
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Qualifying relative. See IRS Publication 502 for more information.
7 COMMUNITY ACTION FOR IMPROVEMENT, INC. 2023 BENEFITS GUIDE
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