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Let us help you make sense of your options Individual plans are designed for individuals and families without employer-sponsored coverage. They offer the ability to pick from many options to find a plan that fits you or your family’s needs and budget. We offer a variety of services to our individual and family plan clients:
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HSA Contributions limits for 2021
Family $7,200
Individual $3,600
Catch-Up (55 years of age or older) $1,000
What is an HSA?
Simply stated, an HSA is what you get when you combine a high-deductible health insurance plan and a tax-exempt savings account. They are designed to allow individuals to use pre-tax dollars to help pay for current and future medical expenses.
HSA Annual Catch-Up Provision
For persons age 55+, all years and all coverage types: $1,000
What Are the Benefits of an HSA?
- Contributions are 100% tax deductible
- You choose when to make your contributions and how to invest them
- Contributions to your HSA by your employer are excluded from your gross income
- Unused funds rollover from year to year
- The interest or other earnings on the assets in the account are tax deferred
- Funds can be used at any time for qualified medical expenses tax-free
How Does It Work?
HSA's work just like a normal checking account – contributions are as easy as making a deposit and paying eligible expenses are as easy as writing a check or using your debit card.
Why High Deductible Insurance?
To get the benefits of an HSA, the law requires that the savings account be combined with a high deductible health insurance plan.
Contributing to an Health Savings AccountContributing to an HSA is easy – and it comes with some great tax advantages.
Who Can Contribute?
- Employers and employees can contribute to an HSA as long as the account holder meets the requirements for HSA eligibility
- Family members or any other person can make contributions on behalf of an eligible individual
Tax Advantages:
- Contributions are 100% tax-deductible for the account holder (excluding employer contributions)
- Funds grow on a tax-deferred basis and if the funds are used for an eligible expense, the funds are tax-free
- Funds rollover from year to year
- After age 65, funds can be used tax-free for eligible expenses, including Medicare premiums, or taxed with no penalty for other expenses
Contributions Are:
- 100% tax-deductible for the account holder (excluding employer contributions)
- Owned by account holder until the funds are used
- Made at any point during the year, up to the individual's tax deadline (usually April 15, just like IRAs)
Spending Your HSA
HSA funds are payable on demand. There are no restrictions on when or how you may take distributions. However, to fully recognize the tax advantages, funds must be used for qualified medical expenses.
The IRS requires that an HSA be an individual account. If you would like another person to have a debit card, you may name them as an authorized signer.
What Happens to Unused HSA Funds?
- No use it or lose it rules
- All amounts in the HSA are fully vested
- Unspent balances in accounts remain in the account until spent
- Accounts can grow through investment earnings, just like an IRA
- Same investment options and investment limitations as an IRA
- Same restrictions on self-dealing as with IRAs
What Happens When I Reach Age 65?
As of age 65, funds can continue to be used for eligible medical expenses tax-free. You may also use the funds for non-eligible expenses and you are only subject to ordinary income tax without any IRS penalty.
