How do I Qualify for a Health Savings Account?

Health Savings Accounts (or HSAs for short) are tax-free personal savings or investment accounts. The accounts were created by the federal government in 2003 and are offered through banks and credit unions. If you’re eligible, you can use its funds tax-free to pay for any qualifying healthcare expenses!

With an HSA Account, you’ll be able to take an active role in your medical care – and receive tax savings benefits besides.

How do I Qualify for an HSA?

To qualify, you must meet the following requirements:

• You’re covered by a qualified high deductible health plan, but not simultaneously covered by a separate health plan that does not qualify.

Note: To qualify, a high deductible health plan must have a minimum individual deductible (the amount you would have to pay for medical expenses before the insurance kicked in) of $1,000.00 or a family deductible of $2,000.00, with annual out-of-pocket expense caps of $5,100.00 for individuals or $10,200.00 for families.

• You are not currently enrolled in Medicare.
• You can not be claimed as a dependent on someone else’s tax return.
• Employers of any size are free to establish HSAs Plans for their employees.
• Employees are free to participate in HSAs regardless of their income level.
• Even if you’re the sole proprietor, a partner in or a major shareholder of a Subchapter S corporation, you’re free to establish and contribute to a tax-advantaged HSA Account.

It’s also important to remember that HSA accounts are always portable. You’ll own your Health Savings Account and can take it with you whenever you change your place of employment! Remember, the rollover must be completed within sixty days.