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AppEnabler. What is an HSA?. Portable – Since individual owns the accounts, it does not matter where individual lives, ER, etc. Individually owned savings account. No maximum on amount that can be accumulated. Funds can be used to pay for qualified medical expenses for spouse & tax dependents.
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What is an HSA? • Portable – Since individual owns the accounts, it does not matter where individual lives, ER, etc. • Individually owned savings account • No maximum on amount that can be accumulated • Funds can be used to pay for qualified medical expenses for spouse & tax dependents • Contributions, qualified distributions, interest earnings – tax free Health Savings Account • No maximum to the number of HSAs an individual can own, just limits on how much can be contributed each year.
How Does an HSA Work? • “Qualified medical expenses” spouse & tax dependant children • Deductible • Co-insurance/Co-pay • Over the counter drugs if prescribed by doctor • Dental Expenses • Vision Expenses TAX FREE Qualified Distributions HSA
How Does an HSA Work? • Also the following are eligible: • Health plan coverage premiums while receiving federal or state unemployment benefits. • COBRA continuation coverage premiums. • Medicare premiums: Part A, B & D • LTC (Long-term Care) premiums (portion of) TAX FREE Qualified Distributions HSA
How Does an HSA Work? • Even if account holders have not saved enough in HSA to pay for an expense, they may withdraw funds later • There is no deadline on reimbursements • There is no requirement to use HSA funds for all expenses Qualified Distributions HSA
How Does an HSA Work? Maximum Contribution Per Tax Year HSA Maximums indexed annually by U.S. Treasury Department Pro-rate based on eligibility $1,000 Additional Contribution if you are age 55 and older! Contributions
How Does an HSA Work? Requirements to Contribute to an HSA: • Must be enrolled in a qualified HDHP to contribute to an HSA • Cannot have Medicare Parts A, B, or D • Cannot be claimed as a tax dependent on anyone’s else’s tax return • Cannot have any other coverage that pays first dollar expenses below the deductible , including General Purpose Health FSAs