Health Savings Accounts
Last Updated: March 22, 2013
- You must be covered by a qualified high deductible health plan (HDHP) on the first day of the month
- Single Coverage Minimum annual deductible / Maximum annual out-of-pocket: $1,250 / $6,250
- Family Coverage Minimum annual deductible / Maximum annual out-of-pocket: $2,500 / $12,500
- You cannot be covered by any other health plan that is not a qualified high deductible health plan, including a spouse’s health insurance
- You cannot be covered by a spouse’s Medical FSA
- You cannot be enrolled in Medicare Part A or Part B
- You cannot be covered by TriCare
- To make contributions you cannot have accessed your VA medical benefits in the past 90 days
- You may not be claimed as dependent on another person’s tax return
- Single Coverage: $3,250
- Family Coverage (2 or more people on your policy): $6,450
- Catch up Contribution: If you are age 55 or older at any time during the tax year, you may contribute an additional $1,000 to the numbers above.
- Tax Deductible Contributions – Reduce your income today by the amount of any contributions
- No dividend, interest or capital gain tax – Interest and other earnings on Health Savings Accounts are tax-free
- Withdrawals for qualified medical expenses are tax-free
- Full Portability – If you change insurance companies you can keep your current HSA or move your HSA to another provider at any time.
- Continue to use your HSA dollars tax-free, even if you are no longer covered by a high deductible health insurance plan.
- No Year-End “use it-or lose it” – Health Savings Accounts continue to grow year to year.
- May include investment options for increased growth potential