Yes. To be eligible to open and contribute to an HSA, you need to be enrolled in a qualified high-deductible health plan (HDHP)—one with a minimum annual deductible of $1,250 for self-only coverage or $2,500 for family coverage.
You do.
Qualified medical expenses are those that would generally qualify for the medical and dental expenses income tax deduction as outlined in IRS Publication 502─Medical and Dental Expenses. See www.irs.gov/publications/p502/index.html for a current complete list.
Here is a link to an interactive search for qualified medical expenses: https://learn.healthequity.com/qme/
Yes, and tax-free. HealthEquity calculates, compounds, and credits interest monthly based on the applicable rate for different tiers of the account balance.
Yes. Similar to an IRA, many HSAs let you choose to invest your account balance in stocks/bonds, mutual funds, CDs, and/or annuities.
Yes. However, eligible monies in investments are not FDIC-insured.
Yes. You can make a one-time rollover from your IRA into your HSA. You can’t, however roll money into your IRA from your HSA. Note that a rollover will count against annual contribution amounts.
Anyone can contribute to your HSA. However, only the account holder and the employer receive tax deductions on monies contributed. Only your contribution is tax-free.
You don’t have to claim contributions you receive from others, whether your employer or your family, as gross income on your annual tax return.
In 2019, the maximum contribution as set by the IRS for an individual account is $3,500 and the maximum contribution for family coverage is $7,000. People over the age of 55 can make an additional “catch-up” contribution of $1,000. These limits are the same regardless of the source of the contribution.
You take that money with you wherever you go. The HSA is in your name. It’s your account. If you’re on Medicare or go to another employer that doesn’t have a qualified HDHP, you can still use your HSA money to pay for co-pays and qualified medical expenses, but won’t be able to continue to make contributions to your HSA.
The money rolls over from year to year. You don’t lose the money left in your HSA or the interest it’s earned. It’s your money.
Yes. You can take money out anytime tax-free and without penalty as long as it’s to pay for qualified medical expenses. If you take money out for other purposes, however, you’ll have to pay income taxes on the withdrawal plus a 20% penalty.
If your health insurance plan requires a co-payment, you will pay the copayment as part of the full amount your insurance has contracted to pay for the visit, which you’ll pay in full until meeting your deductible. Whether you continue to pay co-payments after meeting your deductible depends on the specifics of your health plan. You can always use your HSA to pay your co-payments.
You’re responsible to pay the amount your insurance has contracted to pay your doctor, typically a discounted rate, until your deductible is met. You can use your HSA for this expense.
It’s best to have your doctor’s office put the charge through to your insurance, so that you receive credit toward your deductible and know exactly what to pay. Some doctors may require that you pay up front, but most bill your insurance, and then bill you only once the claim has
been processed. Make sure you don’t pay more than your portion shown on the explanation of benefits you receive from your insurance carrier.
Yes. The money in your HSA can be used to pay for qualified medical expenses of any family member who qualifies as a dependent on your tax return. However, if the dependent isn’t covered under your plan, his/her expenses won’t be applied toward your deductible.
If your domestic partner meets the IRS qualifications of a tax dependent, you can legally use your HSA funds for his/her medical expenses.
Yes, provided you’re covered by a qualified HDHP and aren’t on Medicare.
Yes. As long as you’re not enrolled in Medicare yourself and are still enrolled in a qualified HDHP, you can contribute to your HSA.
Yes. If you do though, and are under 65, you’ll be taxed on the money you use and assessed a 20% penalty. Once you’re 65, you’ll be taxed for moneys used for non-medical expenses, but won’t pay a penalty.
Yes. These expenses may not apply to your insurance deductible though.
Yes. These expenses may not apply to your insurance deductible though.
The HSA can be used for cosmetic surgery if prescribed by a physician and deemed being medically necessary.
Yes. You can see your account balances, HSA debit card balance, claim transactions, and more online. You can also pay providers, request reimbursements, and manage your personal information.
Talk to your Health Broker or Visit: HealthEquity