What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-exempt trust or custodial account established for the purpose of paying or reimbursing qualified medical expenses of you, your spouse and your dependents. Contributions to an HSA are tax deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax free.
Am I Eligible for a HSA?
You are eligible if you have a qualifying high deductible health plan (HDHP) and answer “No” to each of the following questions:
- Do you have other health coverage (except permitted coverage)?
- Are you enrolled in Medicare?
- Are you claimed as a dependent on another person’s tax return?
Who can contribute to My HSA?
If you meet the eligibility requirements for an HSA, you, your employer, your family members, and any other person (including non-individuals), may contribute.
How much can be contributed to my HSA?
The contribution limit for 2018:
- $3,450.00 for self only coverage
- $6,900.00 for family coverage
If an individual is 55 or older by the end of their taxable and for any months individuals are not enrolled in Medicare, there is additional allowable $1,000 catch-up contribution.
For more information on how to apply for a Health Savings Account, stop by one of our branches, contact us online or call (816) 781-4500.