HSA - Frequently Asked Questions
What is a Health Savings Account ("HSA")?
A Health Savings Account allows individuals to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax free basis.
Who is eligible for a Health Savings Account?
To be eligible for a Health Saving Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other health insurance
(does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not eligible for Medicare, and can't be claimed
as a dependent on someone else's tax return.
What is a "High Deductible Health Plan" (HDHP)?
A HDHP is a health insurance plan with minimum deductible of $1,250 (self-only coverage) or $2,500 (family coverage). The annual out-of-pocket (including
deductibles and co-pays) cannot exceed $6,350 (self-only coverage) or $12,700 (family coverage). HDHPs can have first dollar coverage (no deductible) for
preventive care and higher out-of-pocket (copays & coinsurance) for non-network services.
Who can contribute to a Health Savings Account?
Contributions to HSAs can be made by either the employer or the individual, or both. If contributions are made by the employer, it is not taxable to the employee
(excluded from income).
How much can I contribute to a Health Saving Account?
The maximum contribution is the lesser of the deductible amount under the HDHP or (for 2014) $3,300 for individuals or $6,550 for family coverage. These dollar
limits will be adjusted for inflation each year. If you are a person to 55 years or older you can make an additional catch-up contribution of $1,000.00 annually.
Do Health Savings Account funds roll over year after year and get invested?
Yes, the money invested in a Health Savings Account rolls over year after year.
Who has control over the money invested in a Health Savings Account?
In most cases the individual will have control over the assets.