A Health Savings Account (HSA) is a special purpose account that allows individuals to save for future qualified medical expenses tax-free. An HSA is a great way to prepare for unexpected medical bills.
Below is a list of frequently asked questions, Click the question to see more information. This is for general information only and is not intended to provide specific advice or recommendations for any individual. We suggest that you consult your attorney, accountant, financial or tax advisor with regard to your personal situation.
Who Is Eligible for an HSA?
What is a qualified HDHP for the purposes of opening an HSA?
What is the Minimum Amount Required to Open an HSA?
Who Is Eligible To Contribute To An HSA?
What Are the Tax Benefits of an HSA?
What Can I Pay For With My HSA?
Do I Lose my HSA Funds if I Don't Spend Them by the End of a Calendar Year?
How Do I Withdraw Money From the Account?
Can My Spouse Access The Funds In My HSA?
Who Is Eligible for an HSA?
You must meet the following requirements to qualify for an HSA:
- Be covered by an HSA-eligible high deductible health plan
- Cannot be covered under another health insurance plan (including Medicare) that is not an HDHP, with certain exceptions (You cannot open or contribute to an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before the HDHP deductible is met.)
- Cannot be claimed as a dependent on someone else’s tax return.
What Is An HSA-qualified HDHP?
Not all high deductible health plans are HSA-qualified. There are specific features of an eligible plan and insurance companies have created plans to meet these features. Many eligible plans include HSA in the plan name. If it is not clear by the plan name, contact your employer or health insurance provider to confirm if your health insurance plan is an HSA-qualified HDHP.
What is the Minimum Amount Required to Open an HSA?
The minimum required to open an HSA account is $25.00.
Who Is Eligible To Contribute To An HSA?
Contributions to HSAs can be made by you, your employer, or both. All contributions are aggregated to determine whether the maximum allowed contribution has been reached.
What Are the Tax Benefits of an HSA?
Contributions are tax-free. Interest accrues tax-free. Any/all withdrawals for qualified medical expenses for you, your spouse or dependents are tax-free. Plus, once you reach age 65, all non-medical withdrawals are taxed at your then current tax rate, just like a traditional IRA.
What Can I Pay For With My HSA?
With HSA funds, you can pay for a wide variety of health-related expenses including dental and eye care, doctor visit co-pays, prescriptions, and more.
Do I Lose my HSA Funds if I Don't Spend Them by the End of a Calendar Year?
This account has no expiration date, so you don't need to worry about 'using it or losing it'. Instead, you decide when you want to save and when you want to use the funds for qualified medical expenses for you and your family.
How Do I Withdraw Money From the Account?
You can conveniently access your funds with your BHBT HSA debit card or checks.
Can My Spouse Access The Funds In My HSA?
Yes, just add your spouse as a signer on the account.
