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Health Savings Account (HSA)

 

A Health Savings Account (HSA) is a tax-favored account used in conjunction with a qualifying health plan as defined by the IRS.  These HSA-Compatible plans often have lower premiums, offer preventive care benefits and provide coverage for other healthcare services once your deductible is met.  HSA dollars can be used to pay for qualified medical expenses applied to the deductible and for other HSA allowable expenses which may not be covered by the health plan.

Qualified Medical Expenses

 

 

 

 

 

 

HSA COMPATIBLE HEALTH PLANS

Often cover preventive care at 100% without applying toward your deductible.

Premiums may be substantially lower than other healthcare plans.

Can provide you with increased control over the services you receive and the

dollars spent, which can help control premium and healthcare costs.

These are defined by the IRS as qualifying High Deductible Health Plans (HDHP).

 

 

HEALTH SAVINGS ACCOUNT

HSA contributions are tax-free or tax-deductible. Interest, investment income,

and withdrawals are tax-free when used to pay for qualified medical expenses.

HSA funds belong to you and your balance carries over from year to year.

Contributions can come from employers, account holders or third-parties.

After the age of 65, you can use the funds for any non-qualifying expense

without penalities, paying only the income tax due on the withdrawal amount.

Funds collected in your HSA account in excess of your deductible can be rolled over

to a like fund for even greater earning potential.

 

 

MAX CONTRIBUTION FOR INDIVIDUAL HEALTH PLANS IN 2010?

 

$3,050 - Regardless Of Deductible.

 

   

  

WHAT IS THE MAX CONTRIBUTION FOR FAMILY HEALTH PLANS?

 

$6,150 - Regardless Of Deductible.

 

 

WHAT IS THE CATCH-UP CONTRIBUTION IF I AM OVER 55 IN 2010?

 

$1,000

 

 

CAN I ROLL OVER UNUSED FUNDS FROM AN FSA OR HRA?

Yes, regulations now allow you to roll over unused funds from an FSA or

HRA on a one-time basis.  Please talk to your employer or third-party

administrator for specific details. 

 

 

CAN I TRANSFER FUNDS FROM AN IRA TO MY HSA?

Yes, regulations allow a one-time rollover from an IRA to an HSA, up to the

annual HSA contribution maximum.  Prior to transferring funds, please

consult your tax advisor to discuss the benefits and tax reporting requirements.