Health Savings Accounts (HSAs) can help you manage your health care costs. If you have a high-deductible health plan (HDHP), you can set aside funds tax-free in an HSA to pay medical expenses. Unlike a flexible spending account, you do not lose money if you do not spend your contributions within the calendar year. Features include:
- Low opening deposit of $100 + a low setup charge
- No monthly service fee for balances greater than $0
- No transaction charges
- HSA Debit Card offers convenience payment method
- Unlimited check writing
To be eligible for an HSA, you need to meet the following criteria:
- Are not enrolled in Medicare
- Are not claimed as a dependent on another’s tax return
- Do not have additional health coverage that isn’t a qualified high-deductible health plan (HDHP)
- Are covered by an HSA-eligible, high-deductible health plan (HDHP)
Individuals and/or employers set aside funds in an HSA to pay for out-of-pocket medical expenses, including:
- Doctor and dentist visits
- Transportation to receive medical care
- Qualified long-term care premiums
- Health premiums when you are unemployed or over age 65
- Hearing aids, eyeglasses and LASIK
For a complete list, visit www.irs.gov
The following information applies for the year 2019:
High-deductible plan requirements
- Single coverage: $1,350 minimum annual deductible2, $6,750 maximum out-of-pocket expenses3
- Family coverage: $2,700 minimum annual deductible2, $13,500 maximum out-of-pocket expenses3
Annual deductible contribution limits:
- Single coverage: $3,500 ($4,500 if age 55 or over4)
- Family coverage: $7,000 ( $8,000 if age 55 or over4)
Contact us today for more information.
- 1 Consult your tax advisor.
- 2 Preventative care need not be subject to the minimum annual deductible.
- 3 The limit for maximum out-of-pocket expenses includes deductibles, co-payments and other amounts, but not premiums.
- 4 Available to clients who attain age 55 before the close of the taxable year.
- See Account Disclosures for additional details.