Page 14 - Future Steps
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Health Savings Account
If you enroll in the High Deductible Plan and meet the eligibility requirements
deined by the IRS (see below), you are eligible to contribute to a health savings
account (HSA).
The HSA is an individually owned savings account which allows you to pay for your
eligible expenses with pre-tax dollars. There is no “use it or lose it” restriction like
with the lexible spending account (FSA). HSAs allow you to save and roll money
over if you do not spend it within the calendar year. In fact, if you change health
plans or jobs, the money in the HSA account is yours to keep. So long as you use it
for qualiied medical, dental or vision expenses, the money you contribute to an HSA
is tax-free both when you put it in and when you take it out. IRS Publication 502
provides a complete list of eligible expenses.
Eligibility Requirements
Because there are so many tax advantages with the HSA, there are a few eligibility
requirements that you must meet in order to open and contribute to an HSA. To
contribute to an HSA, you must meet the following criteria.
X You must be enrolled in a qualiied high deductible health plan, like the High
Deductible Plan
X You must not be covered by any other health plan that is not a qualiied high
deductible health plan
X You must not be covered by a health FSA for the tax year in which you will claim
your HSA deposits as tax deductions, unless it is a Limited FSA
X You must not be eligible to be claimed as a dependent on someone else’s tax
return
X You must not be enrolled in Medicare, TRICARE, or TRICARE for Life
X You must not have received Veterans Administration Beneits within the past 3
months; exception for a service related disability
14
F+W, A Content + eCommerce Company
If you enroll in the High Deductible Plan and meet the eligibility requirements
deined by the IRS (see below), you are eligible to contribute to a health savings
account (HSA).
The HSA is an individually owned savings account which allows you to pay for your
eligible expenses with pre-tax dollars. There is no “use it or lose it” restriction like
with the lexible spending account (FSA). HSAs allow you to save and roll money
over if you do not spend it within the calendar year. In fact, if you change health
plans or jobs, the money in the HSA account is yours to keep. So long as you use it
for qualiied medical, dental or vision expenses, the money you contribute to an HSA
is tax-free both when you put it in and when you take it out. IRS Publication 502
provides a complete list of eligible expenses.
Eligibility Requirements
Because there are so many tax advantages with the HSA, there are a few eligibility
requirements that you must meet in order to open and contribute to an HSA. To
contribute to an HSA, you must meet the following criteria.
X You must be enrolled in a qualiied high deductible health plan, like the High
Deductible Plan
X You must not be covered by any other health plan that is not a qualiied high
deductible health plan
X You must not be covered by a health FSA for the tax year in which you will claim
your HSA deposits as tax deductions, unless it is a Limited FSA
X You must not be eligible to be claimed as a dependent on someone else’s tax
return
X You must not be enrolled in Medicare, TRICARE, or TRICARE for Life
X You must not have received Veterans Administration Beneits within the past 3
months; exception for a service related disability
14
F+W, A Content + eCommerce Company
