Page 91 - 2021-2022 New Hire Benefits
P. 91
health savings accounts FAQs p. 2 of 8
11. I don't have a job, can I have an HSA? 17. Does my contribution depend on when I
establish my HSA account or when my HDHP
Yes. If you have coverage under an HDHP. You do
not have to have earned income from employment coverage begins?
- in other words, the money can be from your Your eligibility to contribute to an HSA is
own personal savings, income from dividends, determined by the effective date of your HDHP
unemployment or welfare benefits, etc. coverage. Your annual contribution depends on
12. Does my income affect whether I can have an your HDHP coverage. If you are not covered on
December 1, your contribution depends on the
HSA?
number of months of HDHP coverage you have
There are no income limits that affect HSA during the year (technically, the months where you
eligibility. However, if you do not file a federal have HDHP coverage on the first day of the month).
income tax return, you may not receive all the tax If you are covered on December 1, you are treated
benefits HSAs offer. as an eligible individual for the entire year. However
-if you cease to be an eligible individual during
13. Can I start an HSA for my child?
the following year, the excess over the pro rated
No. You cannot establish separate accounts for contribution is included in income and subject
your dependent children, including children who to a 10 percent additional tax. The amount you
can legally be claimed as a dependent on your can contribute is not determined by the date you
tax return. establish your account. However, medical expenses
incurred before the date your HSA is established
14. l'm a single parent with HDHP coverage but cannot be reimbursed from the account.
have a child/relative that can be claimed
as a dependent for tax purposes, and this 18. Can my employer contribute to my HSA?
dependent also has non-HDHP coverage. Am Contributions to HSAs can be made by you,
I still eligible for an HSA? your employer, or both. All contributions are
Yes, you are still eligible for an HSA. Your aggregated to determine whether you have
dependent's non-HDHP coverage does not affect contributed the maximum allowed. If your
your eligibility, even if they are covered by your employer contributes some of the money, you
HDHP. can make up the difference.
Contributing to an HSA 19. Do my contributions provide any tax benefits?
Your personal contributions offer you an
15. How much I contribute my HSA each "above-the-line" deduction. An "above-the-line"
year? deduction allows you to reduce your taxable
For 2020, if you have self-only HDHP coverage,
income by the amount you contribute to your
your contribution is $7,100 if you have
HSA You do not have to itemize your deductions
a family HDHP, no matter what your HDHP
to benefit. Contributions can also be made to
deductible is. Your contribution limits for 2021 your HSA by others (e.g., relatives). However, you
for self-only HDHP coverage $3,600; $7,200 if a receive the benefit of the tax deduction.
family HDHP If you are age 55 or older, you can
also make additional "catch-up" contributions. 20. If my employer contributes to my HSA, does
These amounts will be increased for inflation in that also provide me any tax benefit?
future years. If your employer makes a contribution to your
HSA, the contribution is not taxable to you the
16. Do my HS contributio have to be made in employee (excluded from income).
equa amounts each month?
No. You can contribute in a lump sum or in any 21. Can I make contributions through my
amounts or frequency you wish. However, your employer on a "pre-tax" basis?
account trustee/custodian (b credit union, If your employer offers a "salary reduction"
insurer, etc.) can impose minimum deposit and plan (also known as a "Section 125 plan" or
balance requirements. "cafeteria plan"), you (the employee) can make
continued
