Health Savings Accounts (HSAs)
What are HSAs?HSAs are tax-friendly savings accounts that allow you to build a fund for future or current medical expenses that insurance may not cover. The best part is, the account is all yours and any unused funds may be used to supplement your retirement savings.
Who is Eligible?Anyone under the age of 65 who is covered by a qualified High Deductible Health Plan (HDHP) and not another health insurance carrier or Medicare may be eligible to open an account. In addition, if you are claimed as a dependent by another person, you are not eligible to open an HSA.
Benefits
- Contributions are tax-deductible
- Interest earned is tax-free
- Funds may be rolled over each year
- Withdrawals are tax-free when used for qualified medical expenses
- Funds may be used to cover you, your spouse or dependent children
Contribution Limits and HDHP Requirements for 2012**
|
Self-Only HDHP Coverage*
|
Family HDHP Coverage
|
Annual Contribution Limit
|
$3,100 |
$6,250
|
Catch-Up Contribution Limit
(for individuals 55 or older) |
$1,000 |
$1,000
|
Required minimum annual HDHP deductible
|
$1,200 |
$2,400 |
Required minimum annual HDHP deductible
|
$6,050 |
$12,100
|
* For any individual, the maximum contribution is the lesser of the indexed amount or the
deductible of the HDHP. Also, a minimum balance may be required to keep your account open.
** If you did not have an HSA qualified HDHP for the entire year, please consult your tax advisor for contribution limits.
Savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, the National Credit Union Association.
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