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How an HSA Works with the Consumer-Driven Short Plan Year Limits
Health Plan HSA Individual $1,750*
How You Use Your HSA HSA Family $3,500*
You determine how and when to use your HSA dollars. You can use your HSA Catch Up $500*
funds to pay for qualiied healthcare expenses covered by the CDHP. If
you decide to use funds to pay for ineligible expenses, there will be a 20% * Please note, due to a short plan year
from July 1, 2019–December 31,
penalty, plus income tax payment. You can also pay for health expenses 2019, the annual limit will be reduced
out-of-pocket and let your HSA funds grow. in half to remain compliant with
the IRS .
Any funds remaining at the end of the year will remain in your account
for future use. Regardless of your employer, the HSA funds are yours to
keep.
When You are Eligible to Open and Fund an HSA
You are covered by an HSA eligible CDHP option
You are not covered by your spouse’s traditional health plan or
healthcare FSA
You are not eligible to be claimed as a dependent on someone else’s
tax return
You are not enrolled in Medicare, TRICARE, or TRICARE for Life
You have not received Veterans Administration Beneits*
* VA medical beneits received for a service-related disability will not be taken into account
when determining eligibility
How You Fund Your HSA
You can set aside dollars on a pre-tax basis through payroll deduction,
which can be changed at anytime through HR, or make deposits to your
HSA like you would for any other checking account. If you do the latter,
remember to take the tax deduction when iling your tax returns.
Per the IRS, the maximum amount you can contribute to your HSA for
2019 is $3,500 for an individual or $7,000 for a family (associates age 55
and older can contribute an additional $1,000 “catch-up” contribution
per year). As the HSA account holder, you are responsible for assuring
that you do not exceed the annual IRS contribution limits. If you are irst
eligible to contribute to a HSA mid-year, your contribution amount will
be pro-rated.
TheBANK of Edwardsville 9
Health Plan HSA Individual $1,750*
How You Use Your HSA HSA Family $3,500*
You determine how and when to use your HSA dollars. You can use your HSA Catch Up $500*
funds to pay for qualiied healthcare expenses covered by the CDHP. If
you decide to use funds to pay for ineligible expenses, there will be a 20% * Please note, due to a short plan year
from July 1, 2019–December 31,
penalty, plus income tax payment. You can also pay for health expenses 2019, the annual limit will be reduced
out-of-pocket and let your HSA funds grow. in half to remain compliant with
the IRS .
Any funds remaining at the end of the year will remain in your account
for future use. Regardless of your employer, the HSA funds are yours to
keep.
When You are Eligible to Open and Fund an HSA
You are covered by an HSA eligible CDHP option
You are not covered by your spouse’s traditional health plan or
healthcare FSA
You are not eligible to be claimed as a dependent on someone else’s
tax return
You are not enrolled in Medicare, TRICARE, or TRICARE for Life
You have not received Veterans Administration Beneits*
* VA medical beneits received for a service-related disability will not be taken into account
when determining eligibility
How You Fund Your HSA
You can set aside dollars on a pre-tax basis through payroll deduction,
which can be changed at anytime through HR, or make deposits to your
HSA like you would for any other checking account. If you do the latter,
remember to take the tax deduction when iling your tax returns.
Per the IRS, the maximum amount you can contribute to your HSA for
2019 is $3,500 for an individual or $7,000 for a family (associates age 55
and older can contribute an additional $1,000 “catch-up” contribution
per year). As the HSA account holder, you are responsible for assuring
that you do not exceed the annual IRS contribution limits. If you are irst
eligible to contribute to a HSA mid-year, your contribution amount will
be pro-rated.
TheBANK of Edwardsville 9
