A Health Savings Account (HSA) is a personal account that is set up in combination with qualified High Deductable Health Insurance Plan.
At any time, throughout the year, you, your spouse or an eligible family member can make contributions to your HSA account, up to the yearly maximum. In 2010, the IRS allows you to contribute up to $3,050 as an individual or $6,150 as a family. There is no minimum that you have to deposit into your account. If you are age 55 or older, you can make an additional “catch-up” contribution of $1,000 a year. Contributions to the HSA can be made through payroll deductions, in a lump sum or by periodic contributions.
Tax Advantages of HSA Accounts:
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Contribute to your HSA is generally made using pre-tax dollars (money that has not been subject to income tax)
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If you make contributions to your HSA using after-tax dollars (money that has already been subject to income tax) it may be tax deductible
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Money in your HSA earns interest which is also tax free
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Withdrawals from your HSA to pay for your qualified health care expenses is not taxed
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In the event of your death, your HSA balance may transfer to a surviving beneficiary tax-free
Other Advantages of HSA accounts*:
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You can sign up for an HSA anytime after enrolling in qualified High Deductible Health Insurance Plan
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There are no set-up fees or monthly administration fees, as long as you are enrolled in an eligible health insurance plan
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You own your HSA and the money in it even if you change jobs or health insurance plans
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It provides you with greater control over your health care spending
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At the end of the year, any remaining money left in the account rolls over to the next year
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You may use your HSA debit card or checks to instantly access your account funds to pay for qualified health-related expenses as allowed by IRS
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Some expenses may not be covered by your health insurance plan, however they could be considered qualified expenses by your HSA
Qualified HSA Expenses:
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Medical deductibles
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Your share of doctor and medical bills
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Diagnostic services not covered by your health insurance plan
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Prescription and over-the-counter drugs
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Dental Care
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Braces
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Hearing aids
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Contact lenses
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LASIK eye surgery
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Long-term care premiums
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Medicare and Medicare Advantage premiums
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Some nursing services
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Wheelchairs
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Organ transplants
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COBRA premiums
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Health premiums if you are unemployed
Not sure if you qualify for an HSA or if it’s the right plan for you? Complete the “Get a Free Quote” form above or call us at Toll Free number (888) 592-7862 and one of our agents will help you with your insurance needs.
* This is only an overview of coverage. Contact us or refer to the policy booklet for a comprehensive description of coverage, benefits and limitations.
