Bryan ISD Health Savings Account (HSA)

Transcription

1 What is a Health Savings Account? A Health Savings Account (HSA) is a savings product that allows individuals to pay for current qualified medical expenses and save toward future medical expenses on a tax-free basis. To qualify for an HSA, you must first be enrolled in a qualified High-Deductible Health Plan (HDHP).

2 Who is responsible for managing my HSA? As the account holder of your HSA, it is your responsibility to keep track of your deposits and withdrawals. You can always access your account online to view your transaction history, check your current balance and obtain statements for your records (if you enroll in online statements ). You should keep receipts of your qualified medical expenses.

3 Who is eligible to open an HSA? an individual must be enrolled in an HSA-qualified HDHP; you cannot be enrolled in Medicare or Medicaid; you cannot be claimed as a dependent on another person s tax return; you must be over the age of 18; and you cannot be covered by another insurance plan, unless it is another HSA-qualified HDHP

4 Bryan ISD High Deductible Plan Design An HSA must be used in conjunction with a qualified highdeductible health plan (HDHP) A qualified high-deductible health plan has : A higher annual deductible than typical health plans The out-of-pocket maximum applies only to covered expenses. Out-of-pocket expenses include copayments, deductible and other amounts, but do not include premiums May provide preventive care benefits without a deductible or with a deductible below the minimum annual deductible

5 Who may contribute funds to my HSA? You, your employer and/or any third party may contribute funds to your HSA, up to the maximum amount allowed by the IRS each year. Note: You can only contribute funds to your HSA while you are covered under an HDHP. However, if you are no longer covered by a qualified HDHP or you enroll in Medicare, you may continue to draw down existing funds to pay for qualified expenses.

6 Do I have to use the funds in my HSA each year? No. Your contributions will remain in your account until you are ready to use them there is no annual requirement to use or lose your funds. You do not have to make withdrawals each year. Also, there is no time limit for reimbursement from an HSA. If you pay for a medical expense out-of-pocket, you can later reimburse yourself. This is true for any medical expense you incur after you establish your HSA.

7 Can a husband and wife establish a joint HSA if they are covered under a family HDHP plan? No. HSAs are individually owned; joint accounts are not permitted. You may, however, authorize your spouse to be a signer on your HSA, with privileges to contribute to and withdraw from the account. Each spouse is permitted to open an HSA, but the combined contributions to their HSAs may not be more than the family contribution limit for the year.

8 How much can I contribute to my HSA? The maximum annual contribution you can make to your HSA for 2014 is: $3,300 for an individual, with individual coverage $6,550 for a family, with family coverage The minimal annual deductible for HDHP: $1,250 for an individual, with individual coverage $2,500 for a family, with family coverage Account holders over the age of 55 who have not yet enrolled in Medicare are eligible to make an additional $1,000 catch-up contribution to their HSA for Please note that only one catch-up contribution is permitted per account per year.

9 HSA Advantages For Employees High deductible insurance and HSA protect against high or unexpected medical bills Members decide how much money to put into the account and whether to use it to pay for current medical expenses or save the money for future needs Triple Tax Savings Tax deductions when members contribute to account Tax-free earnings through investments Tax-free withdrawals for qualified medical expenses Portability Keep the account even if jobs change or retirement funds remain in the account from year to year, like an IRA No use it or lose it rules for HSAs