what is a health savings account eligible plan

A health plan is generally considered compatible with an HSA if the annual deductible is at least $1,250 for individual coverage and $2,500 for family coverage. HSA Eligible Expenses. 2021 Plan Year. An eligible expense is a health care service, treatment or item the IRS states can. In order to be eligible to qualify for an HSA, you must meet the following requirements: You must be covered under a high deductible health plan (HDHP).

What is a health savings account eligible plan -

Health Savings Account (HSA) through Optum Bank

If you enroll in one of the State's High Deductible Health Plans (HDHP), you may be eligible to open a Health Savings Account (HSA) through Optum Bank. An HSA is a tax-advantaged savings account that can be used to pay for eligible healthcare expenses. 

What are the benefits of an HSA?

A Health Savings Account (HSA) helps you plan, save, and pay for healthcare.

  • The State of Colorado contributes $60 per month to your account. 
  • You own your HSA. The money belongs to you, even deposits made by others to your HSA.
  • All unused funds roll over year to year.
  • You keep your HSA even if you change jobs, change health plans, or retire.
  • Your HSA has tax benefits. Money goes into and comes out of an HSA tax-free (as long as HSA funds are used to pay for qualified healthcare expenses). 

Monthly State Contribution

In order to be eligible for the state contribution of $60 per month you must complete the following steps:

  1. Elect and HSA qualified High Deductible Health Plan in Benefitsolver
  2. Elect the HSA option in Benefitsolver
  3. Agree to the terms and conditions in Benefitsolver

Once all steps have been completed and the State receives your account information from Optum Bank, the employer contributions will begin prospectively.

Questions?

Optum Bank: 866.234.8913

optumbank.com

For enrollment questions, please reach out to your agency's Benefit Administrator.

Eligibility

You can open a Health Savings Account (HSA) at Optum Bank if you:

  • Are enrolled in one of the State’s High Deductible Health Plans (HDHP)
  • Are not covered by any other non-qualified health plan, such as a spouse’s plan, unless it is permissible coverage like dental, vision, long-term care, disability, accident, and insurance covering certain types of liabilities, specific illnesses or diseases, or hospitalization.
  • Are not enrolled in Medicare or Tricare
  • Cannot be claimed as a tax dependent on another person’s tax return
  • Are not covered by a General Purpose Healthcare Flexible Spending Account (FSA) or Health Reimbursement Account (HRA)

For a complete list of HSA rules, see IRS Publication 969 for details. Other exclusions may apply. 

HSA Contribution Limits - Calendar Year 2021

HSA contribution limits are determined every year by the Internal Revenue Service (IRS) under section 223 of the Internal Revenue Code (IRC).

2021 Annual HSA Contribution LimitsIndividual CoverageFamily Coverage
Maximum Annual Contribution Limit$3,600$7,200
Catch-up Contribution Limit (age 55+)$1,000$1,000

Note: These IRS statutory contribution limits apply to the combined total of all of your HSA deposits including contributions from you, your employer, family members or anyone else. Catch-up contributions can be made during the calendar year in which the HSA participant turns 55.

Important Disclosures

  • Health Savings Accounts (HSAs) are individual accounts and are subject to eligibility and restrictions, including restrictions on distributions for qualified healthcare expenses set forth in section 213(d) of the Internal Revenue Code (IRC).
  • State taxes may apply. While Health Savings Accounts (HSAs) were created by the federal government, states can choose to follow federal tax treatment guidelines or establish their own. Please consult your tax advisor or state department of revenue for more information.
  • If you are not age 65 or not enrolled in Medicare benefits or not disabled and you use your HSA funds for nonqualified purposes, any HSA funds used for nonqualified purposes are taxable as normal income and also subject to an additional 20 percent (20%) IRS tax penalty.
  • After you turn age 65 or become enrolled in Medicare benefits, you may withdraw money from your HSA for nonqualified purposes without being subject to the 20 percent (20%) IRS tax penalty. The HSA fund withdrawal is treated as retirement income and is subject to normal income tax. The same holds true if you become disabled before age 65, you are not liable for the 20 percent (20%) IRS tax penalty and the HSA fund withdrawals are taxable as normal income.
  • Optum Bank fees may reduce HSA fund balances.
  • Federal and state laws and regulations are subject to change.

This information is not intended as legal or tax advice. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances and for personal advice on eligibility, tax treatment and restrictions.

Источник: https://dhr.colorado.gov/state-employees/state-employee-benefits/health-savings-account

Understanding your health savings account (HSA)

In order to comply with the USA PATRIOT Act, the account administrator is required to verify the identity of each HSA account holder. Please be aware that you must complete the screening process, also known as “vetting”, before your account can be opened.

If you do not pass the screening process, the account administrator will contact you requesting additional information. If you do not provide the requested information within 75 days your HSA election will be cancelled and you will not receive the university's contribution.


For Employees

Once you enroll in the Healthy Savings Plan and elect an HSA, the university alerts the account administrator that you have enrolled in the HSA. The account administrator will mail an HSA welcome packet to you. Your HSA administrator will send your welcome packet and debit card in separate envelopes.

Employees who were enrolled in a university HSA in previous years do not receive a new welcome packet.


For retirees

Once you enroll in the Healthy Savings Plan, contact Optum Bank directly to set up your individual HSA. Contact information is on the plan contacts webpage.

If you are a new retiree and are currently in an HSA as an active employee, you will keep your same account, but it will be changed to an individual HSA rather than the university-sponsored group HSA.

Источник: https://www.umsystem.edu/totalrewards/benefits/hsa

Health Savings Accounts (HSAs) and Medicare

Health Savings Accounts (HSAs) are accounts for individuals with high-deductible health plans (HDHPs). Funds contributed to an HSA are not taxed when put into the HSA or when taken out, as long as they are used to pay for qualified medical expenses. Your employer may oversee your HSA, or you may have an individual HSA that is overseen by a bank, credit union, or insurance company.

If you have an HSA and will soon be eligible for Medicare, it is important to understand how enrolling in Medicare will affect your HSA.

High-deductible health plans

In order to qualify to put money into an HSA, you must be enrolled in a high-deductible health plan. HDHPs have large deductibles that members must meet before receiving coverage. This means HDHP members pay in full for most health care services until they reach their deductible for the year. Afterwards, the HDHP covers all the member’s costs for the remainder of the year.

Enrolling in Medicare when you have an HSA

If you enroll in Medicare Part A and/or B, you can no longer contribute pre-tax dollars to your HSA. This is because to contribute pre-tax dollars to an HSA you cannot have any health insurance other than an HDHP. The month your Medicare begins, your account overseer should change your contribution to your HSA to zero dollars per month. However, you may continue to withdraw money from your HSA after you enroll in Medicare to help pay for medical expenses, such as deductibles, premiums, copayments, and coinsurances. If you use the account for qualified medical expenses, its funds will continue to be tax-free.

Whether you should delay enrollment in Medicare so you can continue contributing to your HSA depends on your circumstances. If you work for an employer with fewer than 20 employees, you may need Medicare in order to have primary insurance, even though you will lose the tax advantages of your HSA. This is because health coverage from employers with fewer than 20 employees pays secondary to Medicare. If you work at this kind of employer and fail to enroll in Medicare, you may have little or no health coverage because your health plan does not have to pay until after Medicare pays. Health coverage from an employer with 20 or more employees pays primary to Medicare, so you may choose to delay Medicare enrollment if you work at this kind of employer and continue putting funds into your HSA.

Note: In either case, you have access to the Part B Special Enrollment Period (SEP) when you lose coverage or retire.

If you choose to delay Medicare enrollment because you are still working and want to continue contributing to your HSA, you must also wait to collect Social Security retirement benefits. This is because most individuals who are collecting Social Security benefits when they become eligible for Medicare are automatically enrolled into Medicare Part A. You cannot decline Part A while collecting Social Security benefits. The takeaway here is that you should delay Social Security benefits and decline Part A if you wish to continue contributing funds to your HSA.

Finally, if you decide to delay enrolling in Medicare, make sure to stop contributing to your HSA at least six months before you do plan to enroll in Medicare. This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.

If you require counseling around HSAs, consult a tax professional.

Источник: https://www.medicareinteractive.org/get-answers/coordinating-medicare-with-other-types-of-insurance/job-based-insurance-and-medicare/health-savings-accounts-hsas-and-medicare

HSA-Eligible Expenses in 2021 and 2022

Learn what you can buy with your HSA card in 2021 and 2022 and the new contribution limits for 2022.

One of the biggest financial challenges people face is covering the high costs of healthcare. Especially as you get older, your healthcare costs tend to rise much faster than inflation. Having a nest egg set aside to cover out-of-pocket health expenses is crucial.

Health savings accounts (HSAs) are designed to incentivize saving money for future healthcare needs. Congress created health savings accounts in 2003 to confer tax advantages to people who set money aside for their healthcare costs.

To contribute to an HSA, you need to have a high-deductible health plan (HDHP). That's because HSAs are meant for those whose health insurance doesn't cover any costs until the insured has already paid a substantial amount. Another HSA rule pertains to maximum annual contributions limits, which are set annually by the Internal Revenue Service (IRS).

Keep reading to find out exactly what types of expenses are covered by HSAs.

Three letter blocks spelling HSA on three piles of coins.

Image source: Getty Images.

What is an HSA-eligible expense?

The IRS has a broad list of expenses related to medical, dental, and vision care that it considers as qualified expenses for HSAs. As long as you spend your HSA funds on any of these IRS-approved expenses, the distribution is not taxed.

Many HSA-eligible expenses are those not ordinarily covered by regular insurance. You can use your HSA to fund copayments and to pay for eligible expenses for yourself and also for your spouse and your dependents. Expenses incurred by adult dependents are eligible provided the recipient is covered by an HDHP and not otherwise insured.

Your HSA must be formally "established" before any expenses can be eligible. State law determines when your HSA is officially established. In most states, if you become eligible for an HSA on Jan. 1, but your first contribution (deducted from your paycheck) doesn't reach your HSA administrator until Jan. 10, then your HSA isn't considered established until Jan. 10.

List of HSA-eligible expenses

Here are some common IRS-approved HSA-eligible expenses. Note that this list is not all-inclusive. Always check with your plan provider if you have questions about whether an expense is covered.

  • Abortion
  • Acne laser treatment
  • Acupuncture
  • Ambulance fees and emergency care
  • Artificial limbs
  • Birth control pills, injections, and devices, such as IUDs
  • Blood pressure monitors
  • Body scans
  • Breast pumps and lactation supplies
  • Breast reconstruction surgery following cancer
  • Canes and walkers
  • Childbirth expenses, such as care from a midwife or obstetrician
  • Childbirth classes for the expectant mother
  • Chiropractic care
  • Contact lenses and saline solution
  • Crutches
  • Dental care, including cleanings, sealants, fluoride treatments, X-rays, fillings, braces, extractions, and dentures
  • Diabetes supplies, such as blood sugar test kits and insulin
  • Diabetes education, including nutrition counseling
  • Eye exams
  • Eye surgery, including laser surgery
  • Eyeglasses, including prescription and reading glasses, and prescription sunglasses
  • Blue-light-blocking glasses
  • First-aid kits
  • Flu shots
  • Guide dogs to assist with disabilities
  • Food, grooming, and veterinary care for guide dogs
  • Hearing aids and batteries
  • Hospital expenses for both inpatient and outpatient services
  • Infertility treatment, including in vitro fertilization; egg, sperm, and embryo storage; fertility monitors; and sperm washing
  • Egg donor expenses related to infertility treatment
  • Inpatient drug and alcohol treatment 
  • Insulin
  • Lab fees
  • Long-term-care premiums, up to a qualifying amount based on your age
  • Medical alert bracelets
  • Medical records fees
  • Medicare premiums if you're 65 or older, excluding Medicare supplemental policies
  • Night guards to treat teeth grinding
  • Nursing care, whether provided in your home or a nursing home
  • Occupational therapy
  • Oxygen and oxygen equipment
  • Physical exams
  • Physical therapy
  • Prescription medications
  • Psychiatrist care
  • Psychologist care
  • Smoking-cessation programs and drugs, including nicotine patches and gums
  • Speech therapy
  • Surgery, excluding elective cosmetic surgery
  • Thermometers
  • Tubal ligation (female sterilization) and tubal ligation reversal
  • Ultrasounds
  • Vaccines
  • Vasectomy (male sterilization) and vasectomy reversal
  • Wheelchairs
  • X-rays

Under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act that passed in March 2020, additional expenses became HSA-eligible. Many of these are over-the-counter (OTC) medications and products that previously were HSA-eligible only with a prescription:

  • Acid reducers
  • Acne treatment
  • Allergy and sinus medications
  • Anti-allergy medications
  • Breathing strips
  • Cough, cold, and flu medications
  • Eye drops
  • Feminine hygiene products, such as pads, tampons, and menstrual cups
  • Heartburn medications
  • Insect repellant and anti-itch creams
  • Laxatives
  • Lip treatments for cold and canker sores
  • Medicated shampoos and soaps
  • Nasal sprays
  • Pain relievers
  • Skin creams and ointments, including cleansers, toners, and moisturizers
  • Sleep aids
  • Sunscreen and OTC remedies (like aloe gel) to treat the effects of sun exposure

In addition, the CARES Act states that, through Dec. 31, 2021, telemedicine or remote healthcare can be covered by HSA plans at no charge, even if you haven't met your insurance deductible.

HSA-eligible expenses with a diagnosis

Under the IRS rules, the following expenses may be HSA-eligible if you have a doctor's note indicating that the product or service is necessary to treat a medical condition. Whenever you have an expense that requires a diagnosis to be HSA-eligible, be sure to obtain the necessary documentation from your medical provider. 

  • Breast implant removal, if the implant is defective or causing medical problems
  • Car modification expenses for additional features, such as hand controls or a wheelchair lift, for people with disabilities
  • CBD and hemp oil
  • Cosmetic procedures, if they're used to correct a deformity or scar stemming from an injury or disease
  • Electric toothbrushes, excluding any replacement brushes
  • Fluoride toothpaste and rinses
  • Home improvements to accommodate a medical condition, such as widening a doorway or adding a ramp to make a home wheelchair-accessible
  • Massage therapy and chairs
  • Mattresses, mattress boards, and special cushions and pillows
  • Meals and lodging, if the costs are incurred during medical treatment
  • Premiums paid for special clothing that provides relief from a diagnosed condition, excluding the "standard" cost of clothing
  • Special education or tutoring services for people with learning disabilities
  • Special home modifications for someone with an intellectual or physical disability
  • Vitamins and dietary supplements
  • Weight-loss programs, health club dues, and exercise equipment
  • Wigs, for diseases that cause hair loss

If you need an item or service that you don't see listed here, you can find out if it's HSA-eligible by searching the HSA Store online.

Ineligible expenses for HSAs

The IRS typically disallows using funds from an HSA for the following types of expenses:

  • Child care for a healthy child
  • Cosmetic procedures, unless they correct a deformity or treat an underlying medical condition
  • Employment-related physical exams
  • Funeral expenses
  • Health insurance premiums, unless you have COBRA continuation coverage or receive unemployment benefits
  • Imported medications that aren't FDA-approved
  • Infant formula, even when the mother can't breastfeed
  • Late payment charges and missed appointment fees
  • Life insurance premiums
  • Long-term disability premiums
  • Marijuana, even if it's prescribed by a doctor
  • Maternity clothes
  • Toiletries

FAQ: What can I use my HSA for?

  • Can I use my HSA for dental expenses? Yes. You can use your HSA to pay for dental cleanings and checkups, along with common procedures such as fillings, root canals, bridges, crowns, and orthodontics. You can't use your HSA for common items like toothpaste, dental floss, or over-the-counter mouthwash. Cosmetic procedures, such as teeth whitening, also aren't covered.
  • Can I use my HSA for my spouse or someone else? Yes. You can use your HSA for your spouse and anyone you claim as a dependent for tax purposes, even if they're not covered by your high-deductible health plan.
  • Can I use my HSA for massage? Sometimes. If you have a letter from your doctor stating that massage is medically necessary, then you can use your HSA to cover the cost. Your doctor must explain why it's necessary, how frequently you need treatment, and how long the treatment should last.
  • Can I use my HSA for vision? Yes. Vision costs, including eye exams and procedures, eyeglasses, contact lenses, and prescription sunglasses, are HSA-eligible expenses.
  • Can I use my HSA for Botox? Typically no. HSA funds can't be used for cosmetic procedures. Unless you're receiving it for medical purposes -- for example, to treat migraine headaches -- you can't use your HSA for Botox.
  • Can I use my HSA for therapy? You can use your HSA to cover talk therapy costs if it's to treat a medical or mental condition. Therapy that's used for general mental well-being or stress relief doesn't qualify. Treatment for alcohol or substance misuse is an eligible expense.
  • Can I use my HSA for physical therapy? Yes. Physical therapy is an approved medical expense.
  • Can I use my HSA for a gym membership? Typically no. Unless you have a letter from your doctor stating that the membership is necessary to treat an injury or underlying health condition, such as obesity, a gym membership isn't a qualifying medical expense.
  • Can I use my HSA for vitamins? Vitamins and supplements generally aren't eligible if they're used to maintain general health. If you have a letter from your doctor saying a vitamin or  supplement is needed to treat a condition, such as a vitamin deficiency, then the expense may qualify. Prenatal vitamins are HSA-eligible expenses.
  • Can I use my HSA for LASIK? Yes. You can use your HSA for laser vision-correcting surgeries, such as LASIK.

Eligible expenses for FSAs versus HSAs

Both an HSA and a flexible spending account (FSA) are tax-advantaged accounts designed to help you save money for medical expenses. The same medical expenses are eligible for coverage with HSAs and health FSAs. Other less-common types of FSAs can be used to cover dependent care or adoption-related expenses instead of medical costs.

The key difference between an HSA and a health FSA isn't which expenses are covered, but rather who controls the money in the account. An HSA is like a 401(k) plan in the sense that you own the account's funds. You can contribute to an FSA only if your employer offers one, and the employer owns the account. If you leave your job for any reason, you'll usually forfeit the money in an FSA. Funds in an FSA typically cannot be rolled over from one year to the next, and you also typically can't contribute to both an HSA and an FSA at the same time. 

Is funding an HSA a good idea?

Contributing to a HSA confers tax advantages, and you can also benefit from employer contributions to an HSA on your behalf. If your employer provides health insurance through an HDHP plan but doesn't offer an HSA, you can establish one independently through an HSA provider such as HSA Bank or Fidelity.

If you contribute to an HSA, it's important to pay attention to which of your expenses qualify since the penalties for using HSA funds for non-qualifying expenses are steep. Ineligible distributions are considered as taxable income, and if you're younger than 65, your HSA is charged a 20% penalty on the ineligible amount withdrawn.

HDHPs can be expensive if you have, or expect to incur, major medical bills. But if you are in good health and have an HDHP, then supplementing it with an HSA can be great way to save for future medical expenses and supplement your retirement savings.


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Источник: https://www.fool.com/retirement/plans/hsa/eligible-expenses/

Purdue HSA Medical Plans

Employees who elect any of Purdue's Consumer-Driven Health Plans (CDHP) — Premier, Standard, or Limited — may be eligible to participate in an HSA — a bank account set up in the employee's name to which Purdue contributes funds that may be used for eligible medical, prescription, over-the-counter, vision, and dental expenses incurred by the accountholder as well as their eligible dependents (e.g., spouse, IRS-qualifying child — one they can claim on their taxes) during their HSA coverage period.

HSAs offer a triple-tax benefit:

  1. You can contribute to them on a pre-tax basis (lowering your taxable income).
  2. Your balance grows tax-free interest over time as it is a true savings account.
  3. You can make tax-free withdrawals and distributions to cover qualified medical expenses.

These funds roll over from year to year with no limit and the account follows the accountholder, even if they leave Purdue employment. Once a certain balance is reached, funds may be invested. Additional benefits to having an HSA are summarized here, in "The Anatomy of an HSA".

Are you eligible for an HSA?

Enrollment into a Purdue CDHP does not guarantee your eligibility for an HSA - there are additional IRS rules which may impact you. To get individualized guidance through these rules, please use our Interactive HSA Tool.

You may also refer to a quick HSA Eligibility Checklist.

Employees who are already 65 or who will turn 65 during the plan year should note that special rules apply to anyone who draws Social Security benefits and/or is covered by Medicare. Please take a few minutes to watch this video which walks you through your choices and what they mean for your Purdue health coverage and HSA, Thinking about Medicare?

Note: The information from the Interactive HSA Tool does not constitute tax or legal advice. If you have specific questions about the implications of an HSA for yourself, you are encouraged to seek professional tax or legal counsel.

If you are not eligible for an HSA, this does not impact your ability to enroll into a Purdue CDHP — only into an HSA. Purdue offers Health Reimbursement Arrangements (HRA) for those who are not eligible for an HSA for any reason.

Customer Identification Program (CIP)

Before you can access your HSA funds, HSA Bank is required to validate your identity through a Customer Identification Program, or CIP, process (all banks are required by federal regulation to do this when a person is attempting to open an account). 

Typically, your identity is verified with no issues.  Occasionally, however, more information is needed to further verify your identity. Most often this occurs when there has been a recent change in your name or address. In this case, HSA Bank will reach out up to three times to request two unique forms of identification which must come directly from you.  This documentation can be submitted to HSA by mail, fax, or by uploading to their secure website.  The details of what is needed and where to send it will be found in the letters from HSA Bank if you fail the CIP process or you can call HSA Bank using the number on the left side of the page.

You will not be able to access your HSA funds until you have pass the CIP process.  Additionally, if the requested documentation is not received by HSA Bank within 60 days, your account will be closed and any contributions made to it will be returned over time (based on the contribution date), less taxes.  If this happens, you will need to take extra steps to reopen the account, must pass CIP, and any missed contributions from Purdue would only apply going forward, beginning with the date the account is reopened.  Questions should be directed to HSA Bank at 1-800-357-6246.

Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

HSA Contributions & Contribution Limits

The contributions and limits shown below assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your contributions and limits.

Purdue Base Contributions

Purdue will make contributions to your HSA based on your medical plan enrollment. This is done incrementally in conjunction with your pay schedule — monthly (for fiscal or academic year pay schedules) or bi-weekly, and academic-year staff do not receive contributions in the months of May through August when they don't receive full pays.

Note: For those enrolling in an HSA midyear, these contributions will be prorated based on your remaining number of pays in the year.

The following amounts will be reflected in the "HSA Savings ER" line under the "Purdue-Paid Benefits" section of each of your pay statements:

  • $200 for employee-only coverage
  • $400 for family coverage (employee + one or more)

Learn how you can earn additional HSA funds through our Healthy Boiler program.

Optional Employee Contributions

You can elect to set aside dollars on a pre-tax basis through payroll deductions for your HSA as long as the total combined contributions from any source (e.g., your deductions, Purdue base, Healthy Boiler wellness program) do not exceed the IRS contribution limits below. You are encouraged, but not required to make your own contributions to an HSA and may change your payroll deductions at any time during the plan year without a Qualifying Life Event (changes may take 1-2 pay periods to reflect on your paycheck).

IRS Contribution Limits

You are responsible for assuring that total contributions to your HSA from all sources combined do not exceed the limits below. As a reminder, these assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your limits. Your age may also affect your limits. See Catch-Up Contributions in the next section.

Spouse tip: If your spouse also receives or makes contributions to an HSA through Purdue or another employer, you must collectively adhere to the contribution maximum family limit.

  • 2022: $3,650 for employee-only coverage or $7,300 for family coverage (employee + one or more)

  • 2021: $3,600 for employee-only coverage or $7,200 for family coverage (employee + one or more)

 

Catch-up Contributions

Federal rules also allow what are called “catch-up” contributions to an HSA. If you are age 55 or older, or will turn 55 any time during the plan year, you may contribute an additional $1,000 above the IRS limits in the previous section. 

Spouse tip: Eligibility to make catch-up contributions is based on the accountholder's age — not on their spouse's age. If the accountholder and the spouse are both 55 or older, the accountholder may still only make a $1,000 catch-up contribution.

Account Management

For detailed instructions on managing your account online (e.g., check your balance, reimburse yourself for eligible expenses paid out-of-pocket, pay a bill, link your bank account) at www.hsabank.com, review HSA Bank's Member Website Guide. You may also access your account on the HSA Bank mobile app.

Interest and Investment Opportunities

Health Savings Accounts are interest-bearing accounts. With HSA Bank, you have the opportunity to potentially increase your funds by taking advantage of their investment options. For more information, please review HSA Bank Self-Directed Investment Options.

Tax Forms Information

HSA Bank tax forms will be made available online at www.hsabank.com from the “View Statements” link on the Message Center tab and you will receive an email from HSA Bank when they are posted. They will not be mailed out automatically unless you opt into receiving paper copies. To opt in, log into HSA Bank, scroll down to the “Quick Links” box, and click “Statement Preferences.” In the Statements section, place a checkmark under "Paper" in the HSA Tax Documents row. You may also call HSA Bank at 1-800-357-6246 to request a paper copy. Be sure to verify your address on file with Purdue is up to date first.

1099-SA

  • Posted by January 31
  • Reports funds distributions (You will not receive this form if you did not withdraw/spend funds from your HSA in the prior tax year)
  • Required to report on IRS form 8889 when filing tax return 

5498-SA

  • Posted in May
  • Reports contributions to your HSA made in the prior tax year along with your HSA balance as of the end of December in the prior tax year
  • Informational only and is not required to file with your tax return

Additional Resources

HSA Frequently Asked Questions

The IRS regulates the requirements for health plans to be eligible for an HSA and the rules associated with participating in/receiving contributions to an HSA. Enrollment into any of Purdue's Consumer-Driven Health Plans (CDHP) - Premier, Standard, or Limited does not guarantee your eligibility for an HSA and this web page is not intended to provide all the information you need to make a decision on whether or not an HSA is right for you. You may want to consult with a tax advisor.

For questions specific to the Healthy Boiler Wellness program (earnings, timing of payment), visit the HSA/FSA/HRA section of the Healthy Boiler FAQ.

For specifics on the features and functions of managing your HSA online, please refer to the HSA Bank Member Website Guide.

Eligibility

To receive contributions to an HSA with Purdue, one requirement is enrollment in one of the Consumer-Driven Health Plans — Premier, Standard, or Limited. Additional rules around eligibility are complex. To help determine whether you may be eligible for an HSA, please use our Interactive HSA Tool.

After your HSA is established with Purdue, if you lose your eligibility to receive contributions to it mid-year, you must decline the account in order to stop your employer contributions. If you are losing eligibility by enrolling in a non-HSA-qualifying medical plan, you will not see the option to enroll in an HSA and therefore won't need to decline it.

In either case, your HSA will become a retail account (rather than an account connected with an employer) and you will become responsible for the monthly account maintenance fee. When this happens, you will receive a letter from HSA Bank regarding the change along with an updated Fee Schedule.

If you are no longer working at Purdue, you will not be able to make or receive pre-tax contributions to your HSA. Your HSA funds will remain yours to keep and you can still use them free of taxes and penalties, provided they are spent on eligible expenses. Your HSA will become a retail account and you will become responsible for the monthly account maintenance fee. When this happens, you will receive a letter from HSA Bank regarding the change along with an updated Fee Schedule.

The IRS prohibits individuals from participating in both an HSA and a health care FSA or HRA (allows reimbursement for eligible medical, prescription, over-the-countervision, and dental expenses, like the HSA). The only FSAs Purdue offers which do not affect your HSA eligibility are Limited Purpose FSAs (eligible vision and dental expenses only) and Dependent Care FSAs (eligible childcare expenses only).

Spouses may not each enroll in an HSA and a health care FSA or HRA at the same time. Therefore, if your spouse is enrolled in a health care FSA or HRA, you would not be eligible to enroll in an HSA.

Account Basics and Contributions

An HSA is an FDIC insured bank account with a triple tax advantage in which eligible employees may participate. First, your contributions to the account are pre-tax, second, withdrawals and distributions from the account are tax-free when the funds are used properly, and third, interest earned on the funds in the account along with any growth and interest following investment is tax-exempt.

 

When you enroll in an HSA, Purdue will send your information to HSA Bank.

In order to open a bank account, HSA Bank is required by law to validate a person's identity. Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

Once your account is opened, the rest of your data is verified through HSA Bank's Customer Identification Program, or CIP, and your account is ready to receive contributions. Occasionally, however, more information is needed to further verify your identity. Most often this occurs when there has been a recent change in name or address. In this case, HSA Bank will reach out to request verifying documentation from you directly.

It is possible to incur fees with your HSA (e.g., by ordering additional debit cards after the first two, over-drafting). You can view a summary of these fees online through your HSA Bank account by logging into HSA Bank, clicking Resources from the menu bar, then clicking View Fee Schedule.

This is done incrementally in conjunction with your pay schedule — monthly (for fiscal or academic year pay schedules) or bi-weekly, and academic-year staff do not receive contributions in the months of May through August when they don't receive full pays. The amount will be reflected in the "HSA Savings ER" line under the "Purdue-Paid Benefits" section of your pay statement.

During the annual open enrollment period in the fall, when electing an HSA, you will have the option to make your own contributions and can enter the annual amount you'd like to contribute. Purdue will divide that amount by your number of pays, deduct it incrementally from your pay before taxes, and submit those funds to HSA Bank for deposit.

The number of pays for a full year are as follows: 12 for the fiscal payroll schedule, 8 for the academic payroll schedule, and 26 for the bi-weekly payroll schedule. Those on the academic payroll schedule will not have HSA deductions taken the months of May and August.

You are encouraged to contribute to your HSA via payroll in order to maximize your tax benefits as that way you wouldn’t pay federal income or Social Security and Medicare payroll taxes; however, if you are unable to contribute via payroll or would prefer not to lower your IRS-reported taxable income which may impact your future Social Security benefits, you are allowed to make post-tax contributions to your account. This way you will get back federal income taxes when filing your taxes, but you will not get back the payroll taxes.

You have until the tax-filing deadline each year (4/15) to do one of the following:

    1. Complete the HSA Contribution Form for HSA Bank and mail it to them with a check. Note: Be sure to mark the appropriate contribution tax year. For example, if you are contributing to your 2020 account in 2021, you will check the box for Prior Year.
    2. If your HSA is linked with your personal bank account, you may do an electronic funds transfer. Instructions on electronic funds transfers and on linking a bank account to your HSA are found in the HSA Bank Member Website Guide. If you are contributing outside of the current year, be sure to select the applicable tax year for the contribution.

As a reminder, you are responsible for ensuring the total contribution amount that goes to your HSA each year does not exceed the IRS maximum for that year – Purdue does not track contributions made to your HSA outside of payroll. Questions around this process can go to HSA Bank at (800) 357-6246 and questions around taxes should be directed to a tax advisor.

Yes.

For 2021, a person with individual/self-only medical coverage may have HSA contributions up to $3,600, and a person with family/self-plus-one-or-more-dependents medical coverage may have HSA contributions up to $7,200. 

 

Funds contributed in excess of your IRS contribution limit and the earnings on those funds are subject to penalty and tax unless you take one of the following additional actions. It is recommended you speak with a tax advisor.

  • Pay the excise tax on the excess contribution when filing your Federal Income Tax Return for the prior year. The funds would remain in your HSA and count as a current-year contribution; therefore you’d need to make sure you subtract the excess amount from the following year’s IRS HSA limits to determine the maximum amount you can contribute that year to avoid further penalties.
  • Complete an HSA Excess Contribution Removal Form and return it to HSA Bank by the tax-filing deadline. The excess amount will be removed from your account and refunded to you, less taxes.  Questions on this process may go to HSA Bank at 800-357-6246.

Yes. If you reach a minimum balance of $1,000 in your HSA, you can transfer funds above that amount to an investment account at HSA Bank. There are account fees and additional expenses associated with the investment accounts, depending on which option and investments you choose.

See "Interest and Investment Opportunities" earlier on this page for more information.

If you are still participating in an HSA while actively employed with Purdue at age 65 and have not enrolled in Medicare, you may continue to make or receive contributions to your HSA.; however, when you retire and enroll in Medicare after age 65, you are retroactively entitled to Medicare for up to 6 months, but no sooner than the first of the month in which you turned 65. This means any HSA contributions made to your account after your Medicare entitlement date will be considered taxable income. Additionally, a mid-year loss of eligibility will affect your contribution limits. It is recommended to consult a Tax Advisor for more information.

Note: Drawing benefits from Social Security at 65 and up requires enrollment into Medicare Part A which affects your ability to make or receive contributions to your HSA.

Upon turning 65, you may use your HSA funds on Medicare Parts A, B, and D premiums. Additionally, if you use or withdraw your HSA funds for non-eligible health care expenses, you will not be subject to the 20% tax penalty, but will be responsible for paying taxes on the amount spent.

You are asked to designate your beneficiary when you first log in online at www.hsabank.com/hsabank/homepage.  To update, log in and click View Account Details under your Health Savings Account, then click My Profile under the My Health Savings Account menu on the left and you will see the Beneficiaries tab on the following page.  You may also complete the HSA Designation of Beneficiary Form and return it to the address at the bottom of the form.

If you are married, your spouse may become the owner of the account and can use it as his/her HSA. Another option is that the account may no longer be treated as an HSA, and will be passed along to your beneficiary or become part of your estate. For specific details on this subject, consult a tax advisor or estate attorney.

Enrollment in an HSA requires you to complete IRS form 8889 when you complete your taxes on an annual basis. Be sure to discuss this with your tax preparer.

See "Tax Forms Information" earlier on this page, just before the HSA FAQs for more information.

Accessing Your Funds

HSA Bank will issue you a debit card for your HSA or will sync your HSA to your HSA Bank card if you already have one from other account. You can also set up payments to a health care provider, order checks, and request reimbursements from your HSA to yourself from the member portal at HSA Bank.

If you incur out-of-pocket expenses and do not have funds available in your HSA to cover those costs, you will need to pay by other means. You can reimburse yourself after each pay period when funds are deposited in your HSA until you are paid back in full.

When you use your card at a vision or dental office, funds will first be pulled from your Limited Purpose FSA until it is exhausted and then it will use your HSA funds. This distinction is made through the provider's merchant category code (number assigned to businesses based on their services offered) which is recognized when your card is used. When you use your card anywhere else, your HSA funds will be spent.

Eligible Expenses

Only the following premiums are considered eligible expenses for which you can use your HSA funds: COBRA continuation of health care coverage; health care coverage while receiving unemployment compensation; long-term care coverage (up to the annual amount allowed by age); and for those age 65 and older, Medicare health care coverage including Medicare Parts A, B and D.

Health insurance premiums for coverage offered through an employer and premiums for Medicare supplemental plans, such as Medigap are not considered eligible medical expenses.

Источник: https://www.purdue.edu/hr/Benefits/HSA_FSA/hsa.php

What Is An HSA?

Things To Know About An HSA

  • Pre-tax contributions*: If you are eligible for an HSA, you and your employer can make tax-free contributions (up to the annual limit) to your HSA.
  • Tax-free withdrawals:  As long as you are paying for a qualified medical expense, withdrawals from your HSA are tax-free .
  • Portability:  You take your HSA account with you, even if you change jobs or health plans.
  • No "Use It or Lose It":  Your HSA funds roll over annually, regardless of the amount.

Learn the difference between an HSA and an FSA (Flexible Spending Account).

* Health Savings Accounts (HSA) have tax and legal ramifications. Blue Cross and Blue Shield of Montana does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products.

Источник: https://www.bcbsmt.com/insurance-basics/how-health-insurance-works/what-is-an-hsa

Medicare’s tricky rules on HSAs after age 65

Before the tax-savings wonder that is the health savings account (HSA) was introduced in 2003, it was a generally accepted best practice for any worker who wasn't already collecting Social Security at the age of 65 to go ahead and sign up for Medicare Part A (hospital insurance), regardless of other coverage. By being "in the system," the person was more likely to avoid penalties for late enrollment in Part B (medical insurance), Part D (prescription drug coverage), or other Medicare policies if he or she continued working with employer-provided health care coverage, with no additional cost in premiums (since Part A is free).

This rule of thumb still applies, for the most part, but a crucial exception arises for anyone who works past age 65 and wishes to continue contributing to an HSA. As this article discusses, individuals who enroll in Medicare Part A are not allowed to continue funding their HSA.

MEDICARE RULES OVERVIEW

A high-level overview of the Medicare enrollment rules is in order. According to Medicare.gov:

1. Taxpayers already receiving Social Security at their 65th birthday will automatically be signed up for Medicare. Taxpayers who aren't yet collecting Social Security and are still covered by an employer's group health plan because they are actively working (retiree medical plans do not count) may wish to defer signing up for Medicare at their 65th birthday resorts at the outer banks nc order to continue contributing to an HSA.

2. Besides the special enrollment periods available to workers who defer Medicare due to other eligible coverage, there are only certain times of year that Medicare recipients can sign up for or change coverage, which is why getting the sign-up process right is so important.

3. Signing up for Medicare Part B when first eligible avoids penalties. Generally speaking, taxpayers are able to defer Medicare past age 65 if they work for an employer with 20 or more employees while also enrolled in a group health plan based on that employment. However, they will need to take action to enroll upon leaving that plan in order to avoid lifetime penalties for late enrollment in Medicare Part B.

ELIGIBILITY FOR HSA CONTRIBUTIONS

There are lots of quirks involved when determining whether a taxpayer is eligible to make contributions to an HSA (which are always tax-deductible as long as they are allowed), most of them having to do with health care plan design. But a separate rule that often trips up taxpayers is that HSA contributions are disallowed when a taxpayer has other uia online registration in addition to an HSA-eligible plan (Sec. 223(c)(1)(A)(ii)).

This applies to taxpayers whose other coverage is TRICARE (the health care program for uniformed service members, retirees, and their families). It also applies to anyone whose spouse is using a flexible spending account, which is technically other coverage under the HSA rules (limited-use flexible spending arrangements (FSAs) are the exception here and are typically offered alongside HSAs when available). Where this can get really sticky (and the focus of this article) is when a taxpayer works past age 65 with HSA-eligible group health coverage.

MORE KEY FACTS AFFECTING MEDICARE AND HSA COORDINATION

It's simplest to lay out the facts followed by an example to best help taxpayers and their advisers apply the nuances to specific situations:

  • HSA contributions (including employer-provided ones) are disallowed when other coverage is in place, including Medicare Part A. Workers can still enroll in HSA-eligible plans and use funds already in HSAs for eligible expenses; they just can't contribute further once enrolled in Medicare.
  • Workers may opt to participate in an HSA-eligible plan after enrolling in Medicare, typically because it's the only plan available to them at their workplace or because the lower premiums justify the choice, but they cannot contribute additional funds to their HSA nor can they accept contributions from their employer without penalty.
  • There is a six-month lookback period (but not before the month of reaching age 65) when enrolling in Medicare after age 65, so a best practice is for workers to stop contributing to their HSA six months before enrolling in Medicare to avoid penalties. See the examples below for more on this.
  • Funds already in the HSA can still be used for qualified medical expenses upon enrollment in Medicare, including to reimburse taxpayers for Medicare premiums (but not premiums for Medicare supplemental insurance) as well as to pay for long-term-care costs and insurance.
  • If a worker is already collecting Social Security upon turning age 65, he or she will be automatically enrolled in Medicare and henceforth no longer be able to contribute to his or her HSA. The only way to opt out of this would be to rescind the Social Security election (within 12 months) and pay america first credit union west valley all benefits received to date.
  • A worker enrolling in Social Security upon reaching full retirement age will automatically be enrolled in Medicare Part A and consequently cannot make HSA contributions.

Example 1: To illustrate how the six-month lookback period operates, let's say that A plans to work until age 67 in order to reach her full Social Security retirement age and opts to defer Medicare until then as well in order to continue funding her HSA. If A's birthday (and therefore her Social Security and Medicare enrollment date) is July 1 or later that year, she simply needs to stop any contributions to an HSA during the calendar year of retirement six months prior to her birthday.

Example 2: Using the above example, except for changing A's retirement date to April 1, 2021, her Medicare enrollment with the six-month lookback would actually be Nov. 1, 2020. If A fully funded her HSA by the maximum allowable amount for 2020, she would need to recalculate for the two months of ineligibility then take steps to remove the excess contributions from the activate amazon rewards credit card. If A had already filed her 2020 income tax return before removing the excess contributions, an amendment may be in order as well to account for the loss of the tax deduction taken for ineligible contributions.

OTHER RULES TO KEEP IN MIND

Note that to defer Medicare past age 65, the taxpayer must be enrolled in an employer-based group health plan. An HSA-eligible plan through the private marketplace, COBRA, or a health care exchange does not suffice, and in that case, he or she must cease contributions to the HSA upon reaching age 65 and enroll in Medicare to avoid lifetime late-enrollment penalties.

Once a taxpayer is age 65 or older and no longer has coverage through an employer-based group health plan, he or she has eight months to enroll in Medicare Part B to avoid a penalty. If that deadline is missed, there is a risk of a lifetime penalty for late enrollment as well as being unable to enroll until the Jan. 1—March 31 window, which doesn't start coverage until July 1. In other words, getting the Medicare Special Enrollment Period wrong risks a gap in coverage plus a lifetime of penalties.

It's a best practice for taxpayers to go ahead and enroll in Medicare Part B as soon as they decide to retire in order to avoid this scenario.

THE BOTTOM LINE

When taxpayers opt to continue working past age 65 and wish to continue funding an HSA, they need to be very clear on the Medicare rules of enrollment to avoid either penalties for excess HSA contributions or late-enrollment penalties contra costa library login Medicare Part B and Part D.


Источник: https://www.journalofaccountancy.com/issues/2021/jul/medicare-rules-on-hsa-after-age-65.html

HSA-Eligible Expenses in 2021 and 2022

Learn what you can buy with your HSA card in 2021 and 2022 and the new contribution limits for 2022.

One of the biggest financial challenges people face is covering the high costs of healthcare. Especially as you get older, your healthcare costs tend to rise much faster than inflation. Having a nest egg set aside to cover out-of-pocket health expenses is crucial.

Health savings accounts (HSAs) are designed to incentivize saving money for future healthcare needs. Congress created health savings accounts in 2003 to confer tax advantages to people who set money aside for their healthcare costs.

To contribute to an HSA, you need to have a high-deductible health plan (HDHP). That's because HSAs are meant for those whose health insurance doesn't cover any costs until the insured has already paid a substantial amount. Another HSA rule pertains to maximum annual contributions limits, which are set annually by the Internal Revenue Service (IRS).

Keep reading to find out exactly what types of expenses are covered by HSAs.

Three letter blocks spelling HSA on three piles of coins.

Image source: Getty Images.

What is an HSA-eligible expense?

The IRS has a broad list of expenses related to medical, dental, and vision care that it considers as qualified expenses for HSAs. As long as you spend your HSA funds on any of these IRS-approved expenses, the distribution is not taxed.

Many HSA-eligible expenses are those not ordinarily covered by regular insurance. You can use your HSA to fund copayments and to pay for eligible expenses for yourself and also for your spouse and your dependents. Expenses incurred by adult dependents are eligible provided the recipient is covered by an HDHP and not otherwise insured.

Your HSA must be formally "established" before any expenses can be eligible. State law determines when your HSA is officially established. In most states, if you become eligible for an Regions bank atm locations on Jan. 1, but your first contribution (deducted from your paycheck) doesn't reach your HSA administrator until Jan. 10, then your HSA isn't considered established until Jan. 10.

List of HSA-eligible expenses

Here are some common IRS-approved HSA-eligible expenses. Note that this list is not all-inclusive. Always check with your plan provider if you have questions about whether an expense is covered.

  • Abortion
  • Acne laser treatment
  • Acupuncture
  • Ambulance fees and emergency care
  • Artificial limbs
  • Birth control pills, injections, and devices, such as IUDs
  • Blood pressure monitors
  • Body scans
  • Breast pumps and lactation supplies
  • Breast reconstruction surgery following cancer
  • Canes and walkers
  • Childbirth expenses, such as care from a midwife or obstetrician
  • Childbirth classes for the expectant mother
  • Chiropractic care
  • Contact lenses and saline solution
  • Crutches
  • Dental premier federal credit union customer service number, including cleanings, sealants, fluoride treatments, X-rays, fillings, braces, extractions, and dentures
  • Diabetes supplies, such as blood sugar test kits and insulin
  • Diabetes education, including nutrition counseling
  • Eye exams
  • Eye surgery, including laser surgery
  • Eyeglasses, including prescription and reading glasses, and prescription sunglasses
  • Blue-light-blocking glasses
  • First-aid kits
  • Flu shots
  • Guide dogs to assist with disabilities
  • Food, grooming, and veterinary care for guide dogs
  • Hearing aids and batteries
  • Hospital expenses for both inpatient and outpatient services
  • Infertility treatment, including in vitro fertilization; egg, sperm, and embryo storage; fertility monitors; and sperm washing
  • Egg donor expenses related to infertility treatment
  • Inpatient drug and alcohol treatment 
  • Insulin
  • Lab fees
  • Long-term-care premiums, up to a qualifying amount based on your age
  • Medical alert bracelets
  • Medical records fees
  • Medicare premiums if you're 65 or older, excluding Medicare supplemental policies
  • Night guards to treat teeth grinding
  • Nursing care, whether provided in your home or a nursing home
  • Occupational therapy
  • Oxygen and oxygen equipment
  • Physical exams
  • Physical therapy
  • Prescription medications
  • Psychiatrist care
  • Psychologist care
  • Smoking-cessation programs and drugs, including nicotine patches and gums
  • Speech therapy
  • Surgery, excluding elective cosmetic surgery
  • Thermometers
  • Tubal ligation (female sterilization) and tubal ligation reversal
  • Ultrasounds
  • Vaccines
  • Vasectomy (male sterilization) and vasectomy reversal
  • Wheelchairs
  • X-rays

Under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act that passed in March 2020, additional expenses became HSA-eligible. Many of these are over-the-counter (OTC) medications and products that previously were HSA-eligible only with a prescription:

  • Acid reducers
  • Acne treatment
  • Allergy and sinus medications
  • Anti-allergy medications
  • Breathing strips
  • Cough, cold, and flu medications
  • Eye drops
  • Feminine hygiene products, log into my capital one as pads, tampons, and menstrual cups
  • Heartburn medications
  • Insect repellant and anti-itch creams
  • Laxatives
  • Lip treatments for cold and canker sores
  • Medicated shampoos and soaps
  • Nasal sprays
  • Pain relievers
  • Skin creams and ointments, including cleansers, toners, and moisturizers
  • Sleep aids
  • Sunscreen and OTC remedies (like aloe gel) to treat the effects of sun exposure

In addition, the CARES Act states that, through Dec. 31, 2021, telemedicine or remote healthcare can be covered by HSA plans at no charge, even if you haven't met your insurance deductible.

HSA-eligible expenses with a diagnosis

Under the IRS rules, the following expenses may be HSA-eligible if you have a doctor's note indicating that the product or service is necessary to treat a medical condition. Whenever you have an expense that requires a diagnosis to be HSA-eligible, be sure to obtain the necessary documentation from your medical provider. 

  • Breast implant removal, if the implant is defective or causing medical problems
  • Car modification expenses for additional features, such as hand controls or a wheelchair lift, for people with disabilities
  • CBD and hemp oil
  • Cosmetic procedures, if they're used to correct a deformity or scar stemming from an injury or disease
  • Electric toothbrushes, excluding any replacement brushes
  • Fluoride toothpaste and rinses
  • Home improvements to accommodate a medical condition, such as widening a doorway or adding a ramp to make a home wheelchair-accessible
  • Massage therapy and chairs
  • Mattresses, mattress boards, and special cushions and pillows
  • Meals and lodging, if the costs are incurred during medical treatment
  • Premiums paid for special clothing that provides relief from a diagnosed condition, excluding the "standard" cost of clothing
  • Special education or tutoring services for people with learning disabilities
  • Special home modifications for someone with an intellectual or physical disability
  • Vitamins and dietary supplements
  • Weight-loss programs, health club dues, and exercise equipment
  • Wigs, for diseases that cause hair loss

If you need an item or service that you don't see listed here, you can find out if it's HSA-eligible by searching the HSA Store online.

Ineligible expenses for HSAs

The IRS typically disallows using funds from an HSA for the following types of expenses:

  • Child care for a healthy child
  • Cosmetic procedures, unless they correct a deformity or treat an underlying medical condition
  • Employment-related physical exams
  • Funeral expenses
  • Health insurance premiums, unless you have COBRA continuation coverage or receive unemployment benefits
  • Imported medications that aren't FDA-approved
  • Infant formula, even when the mother can't breastfeed
  • Late payment charges and missed appointment fees
  • Life insurance premiums
  • Long-term disability premiums
  • Marijuana, even if it's prescribed by a doctor
  • Maternity clothes
  • Toiletries

FAQ: What can I use my HSA for?

  • Can I use my HSA for dental expenses? Yes. You can use your HSA to pay for dental cleanings and checkups, along with common procedures such as fillings, root canals, bridges, crowns, and orthodontics. You can't use your HSA for common items like toothpaste, dental floss, or over-the-counter mouthwash. Cosmetic procedures, such as teeth whitening, also aren't covered.
  • Can I use my HSA for my spouse or someone else? Yes. You can use your HSA for your spouse and anyone you claim as a dependent for tax purposes, even if they're not covered by your high-deductible health plan.
  • Can I use my HSA for massage? Sometimes. If you have a letter from your doctor stating that massage is medically necessary, then you can use your HSA to cover the cost. Your doctor must explain why it's necessary, how frequently you need treatment, and how long the treatment should last.
  • Can I use my HSA for vision? Yes. Vision costs, including eye exams and procedures, eyeglasses, contact lenses, and prescription sunglasses, are HSA-eligible expenses.
  • Can I use my HSA for What is a health savings account eligible plan Typically no. HSA funds can't be used for cosmetic procedures. Unless you're receiving it for medical purposes -- for example, to treat migraine headaches -- you can't use your HSA for Botox.
  • Can I use my HSA for therapy? You can use your HSA to cover talk therapy costs if it's to treat a medical or mental condition. Therapy that's used for general mental well-being or stress relief doesn't qualify. Treatment for alcohol or substance misuse is an eligible expense.
  • Can I use my HSA for physical therapy? Yes. Physical therapy is an approved medical expense.
  • Can I use my HSA for a gym membership? Typically no. Unless you have a letter from your doctor stating that the membership is necessary to treat an injury or underlying health condition, such as obesity, a what is a health savings account eligible plan membership isn't a qualifying medical expense.
  • Can I use my HSA for vitamins? Vitamins and supplements generally aren't eligible if they're used to maintain general health. If you what is a health savings account eligible plan a letter from your doctor june 1st quotes a vitamin or  supplement is needed to treat a condition, such as a vitamin deficiency, then the expense may qualify. Prenatal vitamins are HSA-eligible expenses.
  • Can I use my HSA for LASIK? Yes. You can use your HSA for laser vision-correcting surgeries, such as LASIK.

Eligible expenses for FSAs versus HSAs

Both an HSA and a flexible spending account (FSA) are tax-advantaged accounts designed to help you save money for medical expenses. The same medical expenses are eligible for coverage with HSAs and health FSAs. Other less-common types of FSAs can be used to cover dependent care or adoption-related expenses instead of medical costs.

The key difference between an HSA and a health FSA isn't which expenses are covered, but rather who controls the money in the account. An HSA is like a 401(k) plan in the sense that you own the account's funds. You can contribute to an FSA only if your employer offers one, and the employer owns the account. If you leave your job for any reason, you'll usually forfeit the money in an FSA. Funds in an FSA typically cannot be rolled over from one year to the next, and you also typically can't contribute to both an HSA and an FSA at the same time. 

Is funding an HSA a good idea?

Contributing to a HSA confers tax advantages, and you can also benefit from employer contributions to an HSA on your behalf. If your employer provides health insurance through an HDHP plan but doesn't offer an HSA, you can establish one independently through an HSA provider such as HSA Bank or Fidelity.

If you contribute to an HSA, it's important to pay attention to which of your expenses qualify since the penalties for using HSA funds for non-qualifying expenses are steep. Ineligible distributions are considered as taxable income, and if you're younger than 65, your HSA is charged a 20% penalty on the ineligible amount withdrawn.

HDHPs can be expensive if you have, or expect to incur, major medical bills. But if you are in good health and have an HDHP, then supplementing it with an HSA can be great way to save for future medical expenses and supplement your retirement savings.


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Источник: https://www.fool.com/retirement/plans/hsa/eligible-expenses/

Health savings accounts (HSAs)

Individual and family health plans

A health savings account (HSA) is a tax-advantaged savings account that can be used to save for health care expenses. You must be enrolled in an HSA-qualified high-deductible health plan to be eligible to open an HSA. You don’t pay taxes on the money you put in, on the money you take out for qualified medical expenses, or on any money you earn on the account.

Qualified medical expenses include your out-of-pocket costs (copays, deductibles, coinsurance) along with some health care services not covered by a health plan, such as LASIK surgery. There’s a maximum amount that you can contribute to an HSA each year; however, if you don’t use all of the money within your benefit period, it rolls over to the next year. (See IRS publication 969 for more information about HSAs.)

How does an HSA work for you?

An HSA lets you save money to pay for qualified medical expenses now and in the future.

What Is an HSA-qualified high-deductible health plan (QHDHP)?

A QHDHP is a health insurance plan with a minimum deductible of $1,350 (for self-only coverage) or $2,700 (for family coverage).1 The annual out-of-pocket cost (including deductibles and copays) cannot exceed $6,750 (for self-only coverage) or $13,500 (for family coverage).1 HDHPs have first-dollar coverage citi credit card login payment billdesk no deductible for preventive care and higher out-of-pocket costs (copays and coinsurance) for out-of-network services.

What are the benefits of an HSA?

An HSA can allow you to:

  • Use the money you save to make tax-deductible HSA contributions.
  • Take tax-free withdrawals to pay for qualified medical expenses to meet your deductible — and to pay for other qualified medical expenses.
  • Save for future health expenses with the ability to invest in a variety of industry-leading mutual funds — once your balance exceeds the $500 minimum.

How do I set up an HSA?

Through Independence, you can set up an integrated HSA or you can set up an HSA with another vendor. When opening an HSA through Independence, simply visit ibx.com after you enroll in an HSA-qualified health plan. Once you are enrolled and logged in, click on “Claims & Spending” and select “Open a Health Savings Account” under the "I want to” prompt.

How do I put money in an HSA?

You can make tax-deductible contributions to your HSA from your personal bank account.

Are there HSA contribution limits once I open an account?

Yes, there are limits on the amount that you may contribute to an HSA. These limits are set by the federal government and are generally updated each year under the government’s health savings account rules and guidelines.

For 2021, the HSA contribution limits are:

  • $3,600 for individual coverage
  • $7,200 for family coverage
  • $1,000 in additional catch-up contributions for individuals between ages 55 to 65

The contribution limits include all contributions made on behalf of the individual (including contributions made by an employee, an employer, a self-employed person, or a family member). If you have more than one HSA, the annual contribution limit applies to the total of all HSAs. You can decide how to contribute to your HSA (one time or multiple times throughout the year) as long as you don’t exceed the maximum allowable annual contribution.

How do I pay for health care with an HSA?

You can use your HSA debit card at places like the doctor’s office and the pharmacy.

How what is a health savings account eligible plan I invest my HSA contributions?

You can use your HSA to help you build a nest egg for retirement.

How do I manage my HSA?

If you have an HSA through Independence Blue Cross, you can take full advantage of convenient self-service tools by logging in to ibx.com for:

  • Balance inquiries and transaction details
  • Payments and reimbursements
  • Account management

Who do I contact with HSA questions?

If you have any questions or concerns about your HSA or questions about health savings account rules, please call Member Services using the phone number provided on the back of your Independence Blue Cross ID card.

Источник: https://www.ibx.com/find-a-plan/individuals-and-families/ibx-health-plans/health-savings-account

While Health Savings Accounts (HSAs) are not insurance plans, there are health online trading brokerage firm plans that are “HSA-eligible” or “HSA-compatible.” HSA plans for individuals can be helpful additions for many Americans and their families who are shopping for new health insurance coverage.

What Is an HSA Account and How Does It Work?

A health savings account, or HSA, is a tax-deductible savings account that is typically paired with a high-deductible health insurance plan (HDHP), which is a type of health insurance plan that has a lower monthly premium but a high deductible. HSA funds can be used at any time; however, you can only contribute to one if you have an HDHP.

In 2021, the annual minimum deductible for a qualified HDHP plan is $1,400 for individuals and $2,800 for families. The maximum out-of-pocket amount is $7,000 for individuals and $14,000 for families.1

Health insurance can help protect you from high medical costs when unexpected emergencies occur. Through planning and budgeting, many families may find it easier to cover some of their out-of-pocket medical expenses with HSA funds.

If you’re interested in an insurance plan with an HSA, contact HealthMarkets today. We can help you find the right plan for your needs with our FitScore® technology. Get started comparing plans today.

Is an HSA a Medical Savings Account? 

Yes, an HSA is a medical savings account, not an insurance plan. You can have money put away in your HSA by setting aside that money yourself or by having it automatically withdrawn from your salary by your employer. 

There are annual limits for HSA deposits. For 2021, these limits are $3,600 for self-only HDHP coverage and $7,200 for family HDHP coverage.2

This money is tax-deductible. As long as you use it for eligible health-related fees, you won’t have to pay taxes when you use it.

What Does an HSA Cover?

You can use your HSA to pay for a variety of medical services, according to the IRS’s Publication 502. It is important to maintain records to demonstrate that your HSA distributions were used for qualified medical expenses, that those expenses haven’t been paid before, and that they haven’t been taken as an itemized deduction.

The services covered by an HSA can include:

  1. Acupuncture
  2. Alcoholism treatment
  3. Birth control pills
  4. Dental treatment, including X-rays, fillings, braces, and dentures
  5. Diagnostic devices
  6. Eye exams and surgery
  7. Long-term care
  8. Psychiatric care
  9. Prescription drugs
  10. Weight-loss programs

In 2020, the utilization of HSAs was expanded. On March 27, 2020, President Donald Trump signed the CARES Act into law.3 The intent of this legislation was to provide economic relief. 

These updates include:4

  • Telehealth  HDHPs with an HSA might provide pre-deductible coverage for telemedicine services through December 31, 2021.
  • Over-the-Counter (OTC) Medications  HSAs can be used to purchase certain OTC drugs, including aspirin, allergy medications, and pain-related medications without a prescription from a physician.
  • Menstrual Care Products  Menstrual products are considered qualified medical expenses for HSA payment or reimbursement.

You will be able to use your debit card for these expenses, as there will be no required claim reimbursement process.

Advantages and Disadvantages of an HSA

Advantages of an HSA

There are some potential advantages of HSA plans for individuals:

  1. You can decide how much money to set aside for your healthcare costs: This is important for families and individuals working within a tight budget. You can determine how much or little of your paycheck can be put directly into your HSA, with the total contribution limit depending on your HDHP coverage, age, date of eligibility, and the date your eligibility ends. Saving enough in your HSA can prevent you from dipping into other funds to pay for healthcare services.
  2. Your employer can contribute to your HSA, but the money is yours: You may be employed at a company that matches how much of your paycheck you set aside for HSA contributions. This also means the money your employer contributed is yours, even after you leave the company.
  3. Unused money in your HSA will be rolled over to the next year: This means that, even if you didn’t need to dip too deeply into your HSA, you still have those funds in your account next year when you re-enroll. Even if you cancel your plan or opt for a different type of plan, you can still use that money to pay for expenses indefinitely.
  4. Your HSA contributions are tax-free: As mentioned before, any contribution you or your employer makes is 100% tax-free. That means if you set aside $50 per paycheck to put into your HSA, all $50 will be added to your balance.

Disadvantages of an HSA

There are also some potential disadvantages of HSA plans for individuals:

  1. Unpredictable illnesses make it difficult to budget your healthcare expenses: No one expects to fall seriously ill or need hospitalization. Because of this, it can be difficult to budget out how much of your HSA balance should be used as a safety net and what can be used for a planned service (e.g., vision correction surgery). However, starting in the mid-2020s, more pricing information will become available.5
  2. Finding the cost of healthcare can be a challenge: Without knowing the cost of a particular medical service, it can be difficult to know how much you’ll have to pay through your HSA or out of pocket until you’re hit with the bill. This is especially true for unanticipated ER visits or emergency care.
  3. Saving money specifically for your HSA can be hard for families on a tight budget: For some families, it can be easier to manually set money aside for their HSA rather than having it automatically deducted from their card my yard near me. Additionally, older or sicker Americans may be unable to save as much money as younger, healthier people.
  4. It can feel easier to want to save up rather than spend: It may feel easier for some Americans to put off seeking medical care in efforts to save up more money in their HSA.

Can I Open a Myhealth bankofamerica com b Savings Account on My Own? 

Yes, you can open a health savings account on your own. By considering the advantages what is a health savings account eligible plan disadvantages of HSA plans for individuals, you can determine whether it will work for you and your family’s unique health and budget requirements. Because high-deductible health plans (HDHPs) provide lower monthly premiums and a is popped corn good for you deductible, choosing a plan with an HSA option can be helpful for emergency situations.

However, for families who expect to visit a doctor or specialist multiple times a year for treatment, health plans like HDHPs may end what is a health savings account eligible plan costing more out of pocket than the plan may be worth. 

At HealthMarkets, we can simplify the process for you with our FitScore technology. With thousands of plans available nationwide, we can compare your unique needs to health insurance plans from more than 200 recognized insurance companies to find the right options for you. 

Get your FitScore today, at no cost to you.


47406-HM-0421

References:
1. “Revenue Procedure 2020-32.” IRS.gov. Retrieved from https://www.irs.gov/pub/irs-drop/rp-20-32.pdf. Accessed April 14, 2021. 
2. HealthCare.gov. Retrieved from https://www.healthcare.gov/high-deductible-health-plan/hsa-eligible-hdhp/ Accessed April 28, 2021 
3. Whitehouse.gov. March 2020. Retrieved from https://trumpwhitehouse.archives.gov/briefings-statements/bill-announcement-93/ 
4. IRS. June 2020. Retrieved from https://www.irs.gov/newsroom/irs-outlines-changes-to-health-care-spending-available-under-cares-act 
5. CMS. October 2020. Retrieved from https://www.cms.gov/newsroom/press-releases/cms-completes-historic-price-transparency-initiative 

HealthMarkets’ FitScore intends to identify plans that fit your needs. You should carefully review official plan materials.

Источник: https://www.healthmarkets.com/content/health-plan-hsa

Health Savings Account

What is a Health Saving Account?

A Health Savings Account (HSA) is a tax-advantagedsavings and spending account that can be used to pay for qualified health care expenses.  An HSA can be funded by pre-tax payroll contributions from you, your employer, or both (subject to annual limits established by the IRS). Unlike a Flexible Spending Account (FSA), funds roll over and accumulate year to year if not spent. An HSA is owned by you, which differentiates it from company-owned Health Reimbursement Arrangements(HRA). HSAs are portable meaning they follow you, not your employer or your health insurance. HSA funds may be used to pay for qualified medical expenses, including deductibles and coinsurance, at any time without federal tax liability or penalty.  In many cases, HSAs are also interest bearing.  Even if you lose your job or health insurance, you can continue to pay for qualified medical and cheap apartments in san jose ca expenses tax-free from your HSA.  Withdrawals from an HSA for non-medical expenses are treated very similarly to an Individual Retirement Account (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.

Am I eligible to establish a Health Saving Account?

To be eligible to open an HSA, you must be enrolled in a qualified High Deductible Health Plan (HDHP), and must not be enrolled in any other health plan that is not an HSA qualified plan. Both of the HDHPs offered by the MACo Health Care Trust are HSA qualified plans.

How do I establish a Health Saving Account?

Individuals enrolled in a qualified HDHP may establish an HSA at any financial institution of their choice.

HealthEquity® is another HSA option for MACoHCT members. HealthEquity is the nation’s oldest and largest dedicated health savings trustee. They provide hassle-free HSA administration through innovative technology and online tools, seamless end-to-end solutions, and 24/7/365 service. Since HealthEquity is fully integrated with the MACoHCT claims system, once a claim is processed and paid by MACoHCT, the remaining balance (member’s responsibility) is automatically sent to HealthEquity. Members can log-into their secure HealthEquity account, via computer or smart-phone, and pay medical providers directly from their HSA. Provider payments can even be scheduled for the future when HSA funds become available or members can elect to reimburse themself. For more information about Health Equity, visit their website or contact Hayley Brager at 406-523-3185.

Источник: https://www.mtcounties.org/risk-sharing/health-care-trust/health-savings-account/

Purdue HSA Medical Plans

Employees who elect any of Purdue's Consumer-Driven Health Plans (CDHP) — Premier, Standard, or Limited — may be eligible to participate in an HSA — a bank account set up in the employee's name to which Purdue contributes funds that may be used for eligible medical, prescription, over-the-counter, vision, and dental expenses incurred by the accountholder as well as their eligible dependents (e.g., spouse, IRS-qualifying child — one they can claim on their taxes) during their HSA coverage period.

HSAs offer a triple-tax benefit:

  1. You can contribute to them on a pre-tax basis (lowering your taxable income).
  2. Your balance grows tax-free interest over time as it is a true savings account.
  3. You can make tax-free withdrawals and distributions to cover qualified medical expenses.

These funds roll over from year to year with no limit and the account follows the accountholder, even if they leave Purdue employment. Once a certain balance is reached, funds may be invested. Additional benefits to having an HSA are summarized here, in "The Anatomy of an HSA".

Are you eligible for an HSA?

Enrollment into a Purdue CDHP does not guarantee your eligibility for an HSA - there are additional IRS rules which may impact you. To get individualized guidance through these rules, please use our Interactive HSA Tool.

You may also refer to a quick HSA Eligibility Checklist.

Employees who email santander consumer finance already 65 or who will turn 65 during the plan year should note that special rules apply to anyone who draws Social Security benefits and/or is covered by Medicare. Please take a few minutes to watch this video which walks you through your choices and what they mean for your Purdue health coverage and HSA, Thinking about Medicare?

Note: The information from the Interactive HSA Tool does not constitute tax or legal advice. If you have specific questions about the implications of an HSA for yourself, you are encouraged to seek professional tax or legal counsel.

If you are not eligible for an HSA, this does not impact your ability to enroll into a Purdue CDHP — only into an HSA. Purdue offers Health Reimbursement Arrangements (HRA) for those who are not eligible for an HSA for any reason.

Customer Identification Program (CIP)

Before you can access your HSA funds, HSA Bank is required to validate your identity through a Customer Identification Program, or CIP, process (all banks are required by federal regulation to do this when a person is attempting to open an account). 

Typically, your identity is verified with no issues.  Occasionally, however, more information is needed to further verify your identity. Most often this occurs when there has been a recent change in your name or address. In this case, HSA Bank will reach out up to three times to request two unique forms of identification which must come directly from you.  This documentation can be submitted to HSA by mail, fax, or by uploading to their secure website.  The details of what is needed and where to send it will be found in the letters from HSA Bank if you fail the CIP process or you can call HSA Bank using the number on the left side of the page.

You will not be able to access your HSA funds until you have pass the CIP process.  Additionally, if the requested documentation is not received by HSA Bank within 60 days, your account will be closed and any contributions made to it will be returned over time (based on the contribution date), less taxes.  If this happens, you will need to take extra steps to reopen the account, must pass CIP, and any missed contributions from Purdue would only apply going forward, beginning with the date the account is reopened.  Questions should be directed to HSA Bank at 1-800-357-6246.

Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

HSA Contributions & Contribution Limits

The contributions and limits shown below assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your contributions and limits.

Purdue Base Contributions

Purdue will make contributions to your HSA based on your medical plan enrollment. This is done incrementally in conjunction with your pay schedule — monthly (for fiscal or academic year pay schedules) or bi-weekly, and academic-year staff do not receive contributions in the months of May through August when they don't receive full pays.

Note: For those enrolling in an HSA midyear, these contributions will be prorated based on your remaining number of pays in the year.

The following amounts will be reflected in the "HSA Savings ER" line under the "Purdue-Paid Benefits" section of each of your pay statements:

  • $200 for employee-only coverage
  • $400 for family coverage (employee + one or more)

Learn how you can earn additional HSA funds through our Healthy Boiler program.

Optional Employee Contributions

You can elect to set aside dollars on a pre-tax basis through payroll deductions for your HSA as long as the total combined contributions from any source (e.g., your deductions, Purdue base, Healthy Boiler wellness program) do not exceed the IRS contribution limits below. You are encouraged, but not required to make your own contributions to an HSA and may change your payroll deductions at any time during the plan year without a Qualifying Life Event (changes may take 1-2 pay periods to reflect on your paycheck).

IRS Contribution Limits

You are responsible for assuring that total contributions to your HSA from all sources combined do not exceed the limits below. As a reminder, these assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your limits. Your age may also affect your limits. See Catch-Up Contributions in the next section.

Spouse tip: If your spouse also receives or makes contributions to an HSA through Purdue or another employer, you must collectively adhere to the contribution maximum family limit.

  • 2022: $3,650 for employee-only coverage or $7,300 for family coverage (employee + one or more)

  • 2021: $3,600 for employee-only coverage or $7,200 for family coverage (employee + one or more)

 

Catch-up Contributions

Federal rules also allow what are called “catch-up” contributions to an HSA. If you are age 55 or older, or will turn 55 any time during the plan year, you may contribute an additional $1,000 above the IRS limits in the previous section. 

Spouse tip: Eligibility to make catch-up contributions is based on the accountholder's age — not on their spouse's age. If the accountholder and the spouse are both 55 or older, the accountholder may still only make a $1,000 catch-up contribution.

Account Management

For detailed instructions on managing your account online (e.g., check your balance, reimburse yourself for eligible expenses paid out-of-pocket, pay a bill, link your bank account) at www.hsabank.com, review HSA Bank's Member Website Guide. You may also access your account on the HSA Bank mobile app.

Interest and Investment Opportunities

Health Savings Accounts are interest-bearing accounts. With HSA Bank, you have the opportunity to potentially increase your funds by taking advantage of their investment options. For more information, please review HSA Bank Self-Directed Investment Options.

Tax Forms Information

HSA Bank tax forms will be made available online at www.hsabank.com from the “View Statements” link on the Message Center tab and you will receive an email from HSA Bank when they are posted. They will not be mailed out automatically unless you opt into receiving paper copies. To opt in, log into HSA Bank, scroll down to the “Quick Links” box, and click “Statement Preferences.” In the Statements section, place a checkmark under "Paper" in the HSA Tax Documents row. You may also call HSA Bank at 1-800-357-6246 to request a paper copy. Be sure to verify your address on file with Purdue is up to date first.

1099-SA

  • Posted by January 31
  • Reports funds distributions (You will not receive this form if you did not withdraw/spend funds from your HSA in the prior tax year)
  • Required to report on IRS form 8889 when filing tax return 

5498-SA

  • Posted in May
  • Reports contributions to your HSA made in the prior tax year along with capital one pre approval auto login HSA balance as of the end of December in the prior tax year
  • Informational only and is not required to file with your tax return

Additional Resources

HSA Frequently Asked Questions

The IRS regulates the requirements for health plans to be eligible for an HSA and what is a health savings account eligible plan rules associated with participating in/receiving contributions to an HSA. Enrollment into any of Purdue's Consumer-Driven Health Plans (CDHP) - Premier, Standard, or Limited does not guarantee your eligibility for an HSA and this web page is not intended to provide all the information you need to make a decision on whether or not an HSA is right for you. You may want to consult with a tax advisor.

For questions specific to the Healthy Boiler Wellness program (earnings, timing of payment), visit the HSA/FSA/HRA section of the Healthy Boiler FAQ.

For specifics on the features and functions of managing your HSA online, please refer to the HSA Bank Member Website Guide.

Eligibility

To receive contributions to an HSA with Purdue, one requirement is enrollment in what is a health savings account eligible plan of the Consumer-Driven Health Plans — Premier, Standard, or Limited. Additional rules around eligibility are complex. To help determine whether you may be eligible for an HSA, please use our Interactive HSA Tool.

After your HSA is established with Purdue, if you lose your eligibility to receive contributions to it mid-year, you must decline the account in order to stop your employer contributions. If you are losing eligibility by enrolling in a non-HSA-qualifying medical plan, you will not see the option to enroll in an HSA and therefore won't need to decline it.

In either case, your HSA will become a retail account (rather than an account connected with an employer) and you will become responsible for the monthly account maintenance fee. When this happens, you will receive a letter from HSA Bank regarding the change along with an updated Fee Schedule.

If you are no longer working at Purdue, you will not be able to make or receive pre-tax contributions to your HSA. Your HSA funds will remain yours to keep and you can still use them free of taxes and penalties, provided they are spent on eligible expenses. Your HSA will become a retail account and you will become responsible for the monthly account maintenance fee. When this happens, you will receive a letter from HSA Bank regarding the change along with an updated Fee Schedule.

The IRS prohibits individuals from participating in both an HSA and a health care FSA or HRA what is a health savings account eligible plan reimbursement for eligible medical, prescription, over-the-countervision, and dental expenses, like the HSA). The only FSAs Purdue offers which do not affect your HSA eligibility are Limited Purpose FSAs (eligible vision and dental expenses only) and Dependent Care FSAs (eligible childcare expenses only).

Spouses may not each enroll in an HSA and a health care FSA or HRA at the same time. Therefore, if your spouse is enrolled in a health care FSA or HRA, you would not be eligible to enroll in an HSA.

Account Basics and Contributions

An HSA is an FDIC insured bank account with a triple tax advantage in which eligible employees may participate. First, your contributions to the account are pre-tax, second, withdrawals and distributions from the account are tax-free when the funds are used properly, and third, interest earned on the funds in the account along with any growth and interest following investment is tax-exempt.

 

When you enroll in an HSA, Purdue will send your information to HSA Bank.

In regions customer service number hours to open a bank account, HSA Bank is required by law to validate a person's identity. Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

Once your account is opened, the rest of your data is verified through HSA Bank's Customer Identification Program, or CIP, and your account is ready to receive contributions. Occasionally, however, more information is needed to further verify your identity. Most often this occurs when there has been a recent change in name or address. In this case, HSA Bank will reach out to request verifying documentation from you directly.

It is possible to incur fees with your HSA (e.g., by ordering additional debit cards after the first two, over-drafting). You can view a summary of these fees online through your HSA Bank account by logging into HSA Bank, clicking Resources from the menu bar, then clicking View Fee Schedule.

This is done incrementally in conjunction with your pay schedule — monthly (for fiscal or academic year pay schedules) or bi-weekly, and academic-year staff do not receive contributions in the months of May through August when they don't receive full pays. The amount will be reflected in the "HSA Savings ER" line under the "Purdue-Paid Benefits" section of your pay statement.

During the annual open enrollment period in the fall, when electing an HSA, you will have the option to make your own contributions and can what is a health savings account eligible plan the annual amount you'd like to contribute. Purdue will divide that amount by your number of pays, deduct it incrementally from your pay before taxes, and submit those funds to HSA Bank for deposit.

The number of pays for a full year are as follows: 12 for the fiscal payroll schedule, 8 for the academic payroll schedule, and 26 for the bi-weekly payroll schedule. Those on the academic payroll schedule will not have HSA deductions taken the months of May and August.

You are encouraged to what is a health savings account eligible plan to your HSA via payroll in order to maximize your tax benefits as that way you wouldn’t pay federal income or Social Security and Medicare payroll taxes; however, if you are unable to contribute via payroll or would prefer not to lower your IRS-reported taxable income which may impact your future Social Security benefits, you are allowed to make post-tax contributions to your account. This way you will get back federal income taxes when filing your taxes, but you will not get back the payroll taxes.

You have until the tax-filing deadline each year (4/15) to do one of the following:

    1. Complete the HSA Contribution Form for HSA Bank and mail it to them with a check. Note: Be sure to mark the appropriate contribution tax year. For example, if you are contributing to your 2020 account in 2021, you will check the box for Prior Year.
    2. If your HSA is linked with your personal bank account, you may do an electronic funds transfer. Instructions on electronic funds transfers and on linking a bank account to your HSA are found in the HSA Bank Member Website Guide. If you are contributing outside of the current year, be sure to select the applicable tax year for the contribution.

As a reminder, you are responsible for ensuring the total contribution amount that goes to your HSA each year does not exceed the IRS maximum for that year – Purdue does not track contributions made to your HSA outside of payroll. Questions around this process can go to HSA Bank at (800) 357-6246 and questions around taxes should be directed to a tax advisor.

Yes.

For 2021, a person with individual/self-only medical coverage may have HSA contributions up to $3,600, and a person with family/self-plus-one-or-more-dependents medical coverage may have HSA contributions up to $7,200. 

 

Funds contributed in excess of your IRS contribution limit and the earnings on those funds are subject to penalty and tax unless you take one of the following additional actions. It is recommended you speak with a tax advisor.

  • Pay the excise tax on the excess contribution when filing your Federal Income Tax Return for the prior year. The funds would remain in your HSA and count as a current-year contribution; therefore you’d need to make sure you subtract the excess amount from the following year’s IRS HSA limits to determine the maximum amount you can contribute that year to avoid further penalties.
  • Complete an HSA Excess Contribution Removal Form and return it to HSA Bank by the tax-filing deadline. The excess amount will be removed from your account and refunded to you, less taxes.  What is a health savings account eligible plan on this process may go to HSA Bank at 800-357-6246.

Yes. If you reach a minimum balance of $1,000 in your HSA, you can transfer funds above that amount to an investment account at HSA Bank. There are account fees and additional expenses associated with the investment accounts, depending on which option and investments you choose.

See "Interest and Investment Opportunities" earlier on this page for more information.

If you are still participating in an HSA while actively employed with Purdue at age 65 and have not enrolled in Medicare, you may continue to make or receive contributions to your HSA.; however, when you retire and enroll in Medicare after age 65, you are retroactively entitled to Medicare for up to 6 months, but no sooner than the first of the month in which you turned 65. This means any HSA contributions made to your account after your Medicare entitlement date will be considered taxable income. Additionally, a mid-year loss of eligibility will affect your contribution limits. It is recommended to consult a Tax Advisor for more information.

Note: Drawing benefits from Social Security at 65 and up academy bank atm near me enrollment into Medicare Part A which affects your ability to make or receive contributions to your HSA.

Upon turning 65, you may use your HSA funds on Medicare Parts A, B, and D premiums. Additionally, if you use or withdraw your HSA funds for non-eligible health care expenses, you will not be subject to the 20% tax penalty, but will be responsible for paying taxes on the amount spent.

You are asked to designate your beneficiary when you first log in online at www.hsabank.com/hsabank/homepage.  To update, log in and click View Account Details under your Health Savings Account, then click My Profile under the My Health Savings Account menu on the left and you will see the Beneficiaries tab on the following page.  You may also complete the HSA Designation of Beneficiary Form and return it to the address at the bottom of the form.

If you are married, your spouse may become the owner of the account and can use it as his/her HSA. Another option is that the account may no longer be treated as an HSA, and will be passed along to your beneficiary or become part of your estate. For specific details on this subject, consult a tax advisor or estate attorney.

Enrollment in an HSA requires you to complete IRS form 8889 when you complete your taxes on an annual basis. Be sure to discuss this with your tax preparer.

See "Tax Forms Information" earlier on this page, just before the HSA FAQs for more information.

Accessing Your Funds

HSA Bank will issue you a debit card for your HSA or will sync your HSA to your HSA Bank card if you already have one from other account. You can also set up payments to a health care provider, order checks, and request reimbursements from your HSA to yourself from the member portal at HSA Bank.

If you incur out-of-pocket expenses and do not have funds available in your HSA to cover those costs, you will need to pay by other means. You can reimburse yourself after each pay period when funds are deposited in your HSA until you are paid back in full.

When you use your card at a vision or dental office, funds will first be pulled from your Limited Purpose FSA until it is exhausted and then it will use your HSA funds. This distinction is made through the provider's merchant category code (number assigned to businesses based on their services offered) which is recognized when your card is used. When you use your card anywhere else, your HSA funds will be spent.

Eligible Expenses

Only the following premiums are considered eligible expenses for which you can use your HSA funds: COBRA continuation of health care coverage; health care coverage while receiving unemployment compensation; long-term care coverage (up to the annual amount allowed by age); and for those age 65 and older, Medicare health care coverage including Medicare Parts A, B and D.

Health insurance premiums for coverage offered through an employer and premiums for Medicare supplemental plans, such as Medigap are not considered eligible medical expenses.

Источник: https://www.purdue.edu/hr/Benefits/HSA_FSA/hsa.php
what is a health savings account eligible plan

3 Replies to “What is a health savings account eligible plan”

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