Stay on top of your Medical Expenses with a Health Savings Account!
What is an HSA?
A tax favored savings account used to pay medical expenses.
Contributions are deductible, just like an IRA.
Withdrawals are not taxed when used to pay qualified medical expenses.
Interest earnings are tax deferred, and tax free if used to pay qualified medical expenses.
How do I know if my current health plan is HSA qualified?
The plan must be a High Deductible Health Plan (HDHP). Contact your insurance provider or talk to your employer if you have an employer sponsored health plan.
Can I pay my HDHP premium out of my HSA?
No. You may pay other premiums out of your HSA, though. Allowed premiums include COBRA, qualified Long-term Care Insurance, and Medicare.
How does the HSA plan work?
You can use funds in your account to pay for health insurance deductibles and qualified medical expenses, including dental and vision care. Once you meet your calendar year deductible for your plan, your plan will pay remaining covered expenses according to the terms and conditions of your plan. Any funds withdrawn for non-qualified medical expenses will be taxed at your income tax rate plus a 10% tax penalty. If you inadvertently write a check or use your debit card for a non-qualified expense, simply come see or call us and have the funds transferred back to your HSA account.
How much can I contribute to my HSA?
The IRS sets annual limits on the amount you can contribute to an HSA. The limit is determined by the type of health policy you have, family or individual, and is subject to a cost-of-living increase each year. The contribution limit for 2020 is $3550 for a single policy and $7000 for a family policy. The IRS allows a “catch-up” contribution of $1000 a year for individuals 55 and over.
Have further questions? Please contact us at 859.259.3466 & sign-up today!