Page 19 - Tacony 2021 Annual Benefits
P. 19
If I’m Not Eligible for the HSA, May I Still Are There Exceptions to HSA Eligibility Rules
Enroll in The Medical Plan? Related to the Other Coverage Rule?
Yes, you can. However, due to your current Generally a person with other health coverage (in
circumstances, you may be ineligible to open or addition to an HSA-qualiied plan) is considered
contribute to the HSA (at least for some period of ineligible to open and contribute to an HSA. This
time). would include coverage under a spouse’s non-qualiied
HSA plan, or enrollment in a healthcare FSA (unless
What if I am Initially Ineligible for an HSA deined as a limited FSA). There are some exceptions to
then Become Eligible for an HSA Later in this “no other coverage” rule.
the Year?
Assuming you meet the HSA eligibility requirements Workers’ compensation Accident
later in the year, you may open the account once you Insurance for a speciic Disability
meet all of the HSA eligibility requirements. The disease or illness Dental
amount you can contribute may be limited to a prorated Hospital indemnity—a Vision
annual amount (review considerations regarding HSA ixed amount per day
contributions, in the Contributions section) and your (or other period) of Long term care
use of funds will also be limited (see distributions hospitalization
section) to services incurred after the date the HSA is
opened. If you have one of the above types of coverage, you
may still be eligible for an HSA. You should consult
with a tax advisor to determine whether this coverage
will disqualify you. Plans in which substantially all of
the coverage is through one of the above listed items
are not considered HSA-qualiied plans.
Tacony Corporation 19
Enroll in The Medical Plan? Related to the Other Coverage Rule?
Yes, you can. However, due to your current Generally a person with other health coverage (in
circumstances, you may be ineligible to open or addition to an HSA-qualiied plan) is considered
contribute to the HSA (at least for some period of ineligible to open and contribute to an HSA. This
time). would include coverage under a spouse’s non-qualiied
HSA plan, or enrollment in a healthcare FSA (unless
What if I am Initially Ineligible for an HSA deined as a limited FSA). There are some exceptions to
then Become Eligible for an HSA Later in this “no other coverage” rule.
the Year?
Assuming you meet the HSA eligibility requirements Workers’ compensation Accident
later in the year, you may open the account once you Insurance for a speciic Disability
meet all of the HSA eligibility requirements. The disease or illness Dental
amount you can contribute may be limited to a prorated Hospital indemnity—a Vision
annual amount (review considerations regarding HSA ixed amount per day
contributions, in the Contributions section) and your (or other period) of Long term care
use of funds will also be limited (see distributions hospitalization
section) to services incurred after the date the HSA is
opened. If you have one of the above types of coverage, you
may still be eligible for an HSA. You should consult
with a tax advisor to determine whether this coverage
will disqualify you. Plans in which substantially all of
the coverage is through one of the above listed items
are not considered HSA-qualiied plans.
Tacony Corporation 19
