by daziumdesign@gmail.com | Sep 15, 2021
Yes. You always have the option to choose when and when not to use your HSA dollars. You may pay for qualified medical expenses with after-tax dollars, allowing your HSA balance to grow tax-free. Many HSA participants elect to pay smaller expenses with after-tax dollars, allowing their balances to grow for the future. In fact, you can reimburse yourself at anytime in the future for eligible expenses you paid for using after-tax dollars as long as they were incurred while you had an open and funded HSA.
by daziumdesign@gmail.com | Sep 15, 2021
The government does allow a one-time transfer of funds from an IRA to an HSA. However, you can only roll your HSA funds into another HSA not an IRA.
– The transferred amount, when combined with other HSA contributions for the year, may not exceed your annual maximum contribution.
– Also, after making such a transfer, you must continue to participate in a qualifying high-deductible health plan for 13 consecutive months, beginning in the month of the IRA-to HSA transfer. If you do not, you will be subject to income taxes and a 20 percent penalty tax on the transferred amount, except in the case of death or disability.
– Such a transfer may be an option if you incur significant medical expenses and find yourself unable to afford to make the maximum HSA contribution.
by daziumdesign@gmail.com | Sep 15, 2021
No, only one person can be named the account owner. If both you and your spouse have qualified HDHP coverage, and want to both make pre-tax HSA contributions or take advantage of the catch controbution once you are 55 or older, then you would each need to open an HSA.
If both you and your spouse have family coverage under qualified high-deductible health plans, the maximum total tax-deductible HSA contribution both of you can make (including employer contributions) is the IRS limit for family coverage. This contribution can be divided between you and your spouse however you wish. If you and/or your spouse are eligible to make catch-up contributions, you may each contribute your eligible catch-up contribution to your individual HSA.
by daziumdesign@gmail.com | Sep 15, 2021
Yes, unsued will carryover into the next year. There is no limit or cap on how large the balance can grow in your HSA. However, the annual limit you can contribute to the HSA may not exceed the maximum contribution amount set by the IRS each year, plus the “catch up” contribution for those ages 55 to 65.
by daziumdesign@gmail.com | Sep 13, 2021
44Cost Savings
- To determine how much cost savings the HSA may provide you and/or your family, you will need to consider several items.
- Your Total Contributions (Remember: Contributions as well as accrued interest to the HSA are tax free.)
- Your Total Estimated Expenses (Remember: Distributions on qualified medical expenses from the HSA are tax free.)
- The Premium Difference Between Your HSA Plan and Other Plan Options (Remember: Monthly premiums for the HDHP insurance are typically lower than those of a Traditional PPO.)
Your Estimated HSA Cost Savings Example
|
Traditional PPO + FSA |
HDHP + HSA |
| Gross Annual Pay |
$60,000 |
$60,000 |
| Maximum Annual Health Care FSA Contribution |
$3,050 |
$7,750 |
| Estimated Annual Family Premium |
-$13,000 |
-$11,000 |
| Adjusted Gross Pay |
$43,950 |
$41,250 |
| Estimated Tax Rate (15%) |
$6,622.50 |
$6,255 |
| Estimated Annual Expenses |
$3,050 |
$3,050 |
| Remaining FSA vs. HSA Balance |
+ $0 |
$4,450 |
| Remaining Take Home Pay with FSA vs. HSA |
$34,677.50 |
$37,045 |
|
|
|
YOUR TAKE HOME PAY COULD BE $2,367.50 MORE WITH THE HSA
All figures in this table are estimates and based on an annual salary and maximum contribution limits to the benefit account. Your salary, tax rate, health care expenses, and tax savings may be different.
Who Is Eligible?
In order to be eligible to enroll and contribute to a Health Savings Account (HSA), you must first ensure you meet the necessary requirements. If your answers to the below questions match ours then you are likely eligible to open and contribute to an HSA.
| Question |
Answer |
| Are you currently enrolled or covered by a HSA-qualified high deductible health plan? |
YES |
| Is the annual deductible for your health insurance plan higher than $1,350 for individual coverage or higher than $2,700 for family coverage? |
YES |
| Is the annual maximum out-of-pocket for your health insurance plan less than $6,750 for individual coverage or less than $13,500 for family coverage? |
YES |
| Are you covered by any other health plan (such as a spouse or parent) that is not considered a HDHP? |
NO |
| Are you currently enrolled in Medicare (Part A or Part B) |
NO |
| Are you currently enrolled in either a Health Care Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) that reimburses you for medical expenses in addition to dental and vision expenses? |
NO |
|
|
Contribution Limits
| Self-Only Coverage |
2023 |
2024 |
2025 |
| Maximum Annual HSA Contribution |
$3,850 |
$4,150 |
$4,300 |
| HSA Catch-up Contribution (Age 55 or Over) |
$1,000 |
$1,000 |
$1,000 |
| Minimum Annual Deductible for HDHP |
$1,500 |
$1,600 |
$1,650 |
| Maximum Out-of-Pocket Limit for HDHP |
$7,500 |
$8,050 |
$8,300 |
| Family Coverage |
2023 |
2024 |
2025 |
| Maximum Annual HSA Contribution |
$7,750 |
$8,300 |
$8,550 |
| HSA Catch-up Contribution |
$1,000 |
$1,000 |
$1,000 |
| Minimum Annual Deductible for HDHP |
$3,000 |
$3,200 |
$3,300 |
| Maximum Annual Out-of-Pocket Limit for HDHP |
$15,000 |
$16,100 |
$16,600 |
|
|
|
|
