Health Savings Accounts
Health Savings accounts are for those members enrolled in qualified health plans, or commonly referred to as high deductible health plans. HSAs are tax exempt accounts established for paying qualified medical expenses of the account owner or beneficiary. These plans make saving for medical expenses a little easier. Besides being tax exempt, funds in a health savings account can remain on deposit and can accumulate from year to year. Funds can be conveniently deposited through direct deposit and you can access your money either through a check or debit card.
Contribution limits for 2020 are $3,550 for an individual plan and $7,100 in 2020 for a family plan. These limits are adjusted annually. Members over the age of 55 may also make an additional catch-up contribution of $1,000.
The bad news is, not everyone qualifies for a HSA. The Internal Revenue Service does have stipulations that must be adhered to; such as, you must be under the age of 65 to open a HSA, you cannot have other health insurance at the same time (except specific injury and accident, disability, long term, dental, and vision), you cannot be enrolled in Medicare, and funds must be used specifically for medical expenses. However, members over the age of 65 may withdraw funds for any reason.
If you have questions regarding opening a HSA, please contact a financial service representative today!