Health Savings Accounts (H.S.A.'s) provide an option for health insurance coverage. Once a High Deductible Health Insurance Plan (HDHP) is purchased by an individual, they become eligible to participate in this tax-sheltered savings account, from which amounts can be withdrawn to pay for medical expenses until the deductible is met and the insurance plan begins to pay.
H.S.A.'s are similar to IRA's in that contributions are tax-deductible going in, and tax-free coming out (when used for a qualified medical expense.) There is no income restriction for contributions; however, there are limits on the maximum annual contribution amount. Those H.S.A. holders 55 and older get to save an extra $1,000 for their contribution (known as a catch-up.)
The 2016 data is listed below:
Maximum annual HSA contribution for an individual is $3,350.
Maximum annual HSA contribution for a family is $6,650.
Maximum annual out-of-pocket expense for an individual is $6,550.
Maximum annual out-of-pocket expense for a family is $13,100.
Minimum deductible for an individual HDHP is $1,300.
Minimum deductible for a family HDHP is $2,600.
The best way for an individual to determine if he has an HDHP is by asking his/her health insurance company or, if in an employer's health insurance plan, asking his/her employer. As well, joining the program mid-year may affect maximum contribution limits.
Our H.S.A.'s operate just like a checking account. Deposits/contributions can be made at any time. Check out our interest rates for this H.S. A. The account can be accessed by check or debit card when paying medical expenses.