What is a Health Savings Account?
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.
Who can have an HSA?
Any adult can contribute to an HSA if they:
- Have coverage under an HSA-qualified "high deductible health plan" (HDHP)
- Have no other first-dollar medical coverage -- other types of insurance such as specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on someone else's tax return
Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. You can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return. Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it to pay for medical expenses tax-free.
- Opening Deposit $25
- Daily Minimum Balance: $4,000 --- minimum balance waived for the first year, and it is also waived if the Employer has their primary business account is with Hantz Bank.
- If Balance Below Minimum: $2.50 per month
- No Per Check Fees
- Interest rate: Variable, Tiered, Compounded Monthly
- Check Images Available: $5 per month
- Check Printing: 1st Order of Specialty Checks Provided
- HSA Debit Card Available
You can make a contribution to your HSA each year that you are eligible.
2013 HSA Contribution Limits
In May 2012 the IRS released the new HSA Contribution Limits for 2013. These rules go into affect January 1, 2013 and contributions can be made until April 15, 2013. There will a slightly larger increase in 2013 for both individuals and families than the small increases of 2012.
Individual HSA Plans will be increased to $3,250.
This represents a $150 increase over the 2012 levels.
Family Plans are increasing to $6,450.
This represents a $200 increase over 2012 levels
Need more Information?
Contact Us today to learn more about opening a Health Savings Account!
Treasury's Web site also has additional information about Health Savings Accounts, including answers to frequently asked questions, related IRS forms and publications, technical guidance, and links to other helpful Web sites. Treasury's HSA Web site can be found through TREAS.gov (click on "Health Savings Accounts")