With a new year comes new limits from Congress on the amounts you can deposit into your health savings account. Contributions can be written off against your gross income and withdrawn tax free for qualified medical expenses.
|Minimum Plan Deductible||Maximum Plan Out of Pocket||2010 Contribution Limit||Age 55 and Older Catch Up Provision|
In order for coverage to be HSA qualified, then the insurance must meet the minimum deductible and maximum out of pocket requirements as defined by the I.R.S. In most cases, you will know if your health insurance can be coupled with an HSA as it will be stated in the policy or advertised when it’s purchased.
Money deposited into an HSA can be written off each year, grows tax deferred, and can be withdrawn tax free for qualified medical expenses. The I.R.S. offers a long list of what encompasses these expenses, but common examples are doctor’s visits, prescription drugs, meeting the deductible or coinsurance amount, and/or dental and vision outlays.
It is important to note that unlike a flexible spending account, funds in an HSA always belong to the insured and roll over from year to year. You do not lose your deposit if you have not used it in any given year or if you cancel your insurance for any reason. Additionally, you can use any HSA savings provider you wish – including your own bank. You do not have to use the bank associated with your chosen insurance company.
If you would like to learn more about health savings accounts or if you would like to view quotes with any number of carriers, please contact us today for more information.
Category: Health Insurance