QHDHPs not only have higher deductibles they also have other requirements. There can be no first-dollar benefits, no co-pays before deductible, no prescription benefits, or other pre-deductible benefits with the exception of preventive services. All expenses must first go toward the deductible, again except for preventive services.
Most banks offer HSA accounts. You can check with your bank or consult our list of banks we’ve worked with.
Yes, and tax-free. Your bank calculates, compounds and credits interest monthly. Talk to them about the specific details.
Yes. Similar to an IRA, many HSAs let you choose to invest your account balance in stocks/bonds, mutual funds, CDs, and/or annuities. Check with your bank for details.
Yes. However, eligible monies in investments are not FDIC-insured.
Anyone can contribute to your HSA. However, only the account holder and the employer receive tax deductions on monies contributed. And 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 2015, the maximum contribution as set by the IRS for an individual account is $3,350, and the maximum contribution for family coverage is $6,650. 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.
Access options depend on the bank where you have your account. Some banks issue a debit card you can use at an ATM or at your doctor’s office. Other access methods can include electronic transfers or checks that can be written on the account. Your bank can explain the specific options they offer.
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.
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