Health Savings Account
Frequently Asked Questions:
Q: What is an HSA?
A: A tax exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses.
Q: Who can contribute to my HSA account?
A: If you meet eligibility requirements for an HSA - you, your employer, family members and any other individual or non individual can contribute.
Q: What type of beneficiary can I list for my HSA?
A: Spouse Beneficiary- If your spouse if the beneficiary of this account, in the event of the owners death, the account becomes his or hers.
Non Spouse Beneficiary - The HSA will cease to be an HSA in the event of owners death.
Q: What are an HSA Owner's Responsibilities?
A: If you are eligible, you can establish an HSA in much the same way you would establish an IRA - with a qualified trustee or custodian. Each year you are responsible for determining your allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement with nontaxable HSA contributions.
Q: How much can I contribute to my HSA?
A: The maximum annual contribution amount is generally lesser of 100 percent of the annual deductible under the HDHP or another specified amount.
Am I Eligible for an HSA?
You are eligible for a regular HSA contribution if, with respect to any month, you:
- Are covered under a High-Deductible Health Plan (HDHP)
- Are not also covered by any other health plan that is not an HDHP
- Are not enrolled in Medicare; and cannot be claimed as dependent on another person's tax return.
*For specific information, you are encouraged to consult our tax or legal professional. IRS Publication 969, Health Savings Accounts and Other Tax- Favored Health Plans, the instructions to IRS Form 8889, and the IRS's website, www.irs.gov, may also provide helpful information.