By establishing a Health Savings Account (HSA) – in conjunction with a high-deductible health plan (HDHP) – you are taking healthcare savings back into your own hands to help make the decisions that are right for you.
Tax-Free Benefits
HSAs allow you to make deductible contributions and accumulate earnings tax free (HSA rates). The distributions are also tax free as long as they are used for qualified medical expenses.
Flexibility in Spending
HSAs are used to pay for or reimburse qualified medical expenses – from health insurance deductibles and co-payments to certain over-the-counter medications and out-of-pocket expenses – for you and your family members.
Year-to-Year Savings
HSA balances will automatically roll over from year to year, allowing you to budget for health expenses and build up savings to cover qualified medical expenses when the need arises.
Individual Ownership
An HSA is owned by you and is your responsibility to maintain.
Contribution Options
Although this is an individual account that you may contribute to and goes with you from career to career, your employer may choose to make contributions to an HSA as an added benefit to you. You may take a once-in-a-lifetime tax-free distribution from an IRA to fund an HSA.
The maximum annual contribution amount is the standard limit. Additionally, you are eligible for a catch-up contribution if you are age 55 or older by the end of your taxable year and have not enrolled in Medicare.
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Contribution Limits
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Tax Year
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Standard Limit
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Additional Catch-up Contribution Amount
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Self-Only
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Family
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2019
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$3,500
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$7,000
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$1,000
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2018
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$3,450
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$6,900
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$1,000
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Distribution Options
The convenience of paying a qualified medical expense with a check or debit card may be an option available to you.
Note: For specific information, please consult your tax advisor.
Contact ACU for more information.