HSA insurance couple

Health Savings Accounts (HSA’s) provide a tax-free way to help pay for current or future out-of-pocket health care expenses. They have similar characteristics to a 401 (k) or an IRA but are specifically for qualified medical expenses. To be eligible to set up an HSA you must enroll in an IRS-qualified high-deductible health plan (HDHP). You, your employer or anyone else can contribute to your HSA. These HSA funds can be used to cover the deductible of your health plan as well as for prescription drugs, over-the-counter medication, laser eye surgery and other qualified medical expenses.

Funds withdrawn from the HSA are not taxed if they are used to pay qualified medical expenses. Unlike amounts in Flexible Spending Arrangements that are forfeited if not used by the end of the year, these unused funds remain available for use in later years. In 2017 the maximum annual HSA contribution for an individual is $3,400 and for families $6,750. To encourage saving for health expenses after retirement, individuals age 55 and older are allowed to make additional catch-up contributions to their HSA’s. Once individuals enroll in Medicare they are no longer eligible to contribute to their Health Savings Accounts.

When an individual enrolls in a HDHP their insurance company often recommends a financial institution where they can set up their HSA. Setting up an HSA is not required. These plans are often selected due to their low premiums instead of their tax advantages. If the policy holder does decide to set up an HSA they can shop around for the best deal. Health Savings Administrator (www.healthsavings.com, 888-354-0697), HSA Bank (www.hsabank.com, 800-357-6246), Health Equity (www.healthequity.com, 866-346-5800), SelectAccount(www.selectaccount.com, 855-363-2583), Wells Fargo (www.wellsfargo.com, 866-884-7374)  are examples of companies that offer HSA’s.

To obtain a rate quote for a High Deductible Health Plan (HDHP) contact Wanda Stephens at 919-845-6001 or Click here to contact Wanda via email form.