HSA Guide.pdf

HSAs are tax-advantaged accounts for individuals with HSA-compatible high deductible health plans to fund and use for qualified medical expenses, accumulating wealth over time, and are portable. Requirements include being enrolled in an HSA-qualified health plan, not being claimed as a dependent, not being enrolled in Medicare, and not having dual health insurance coverage. Contributions are tax-free, with 2019 IRS maximums at $3,500 for individuals and $7,000 for families, and can be funded through payroll deductions or online transfers. HSA funds can be used for qualified healthcare expenses, including medical, dental, and vision, and can also pay for COBRA premiums, long-term care premiums, and Medicare premiums. After age 65, HSA funds can be spent on non-qualified expenses without a 20% penalty, and distributions are taxed as ordinary income. Accountholders can contribute to an HSA, and owners can participate on a tax-free basis. Unused funds roll over from year to year, are interest-bearing, and are portable. Accountholders can pay for qualified expenses using a debit card, and have investment options for balances in their HSA. HSAs offer benefits, including saving money on health insurance premiums and taking control over healthcare choices and expenses.