With the increase in health insurance premiums, many individuals are looking for options to possibly save them money. A health savings account (HSA) is a savings plan that many individuals are setting up. They can be setup at a bank, insurance company, or other IRS approved institution.
To qualify for an HSA, you must meet the following requirements:
- You must be covered under a qualified high deductible health plan (see below for limits).
- You have no other health coverage, with a few exceptions.
- You are not enrolled in Medicare.
- You are not claimed as a dependent on another person’s tax return.
Some of the benefits of an HSA include:
- Claiming a tax deduction for contributions to the plan (see below for limits) even if you do not itemize your deductions.
- Interest or other earnings on the account are tax free.
- Distributions for qualified medical expenses are tax free.
These are just a few of the many rules and regulations on health savings accounts. Please contact us if you are interested in setting up an account for yourself and/or your family.
Limits for 2014 HSA High Deductible Health Plan:
|Type Of Coverage||Minimum Annual Deductible||Maximum Annual Deductible And Out-Of-Pocket Expenses (Other Than For Premiums)|
Limits for 2014 HSA Contributions:
|Type Of Coverage||Under Age 55||Additional Contribution Age 55 Or Older At Year-End|