Embed Size (px)
Citation preview
Considering a Health Savings Account?
(HSA)
Basic HSA Plan Concept
High Deductible health PlanSingle2012
Family2012
Single2013
Family2013
Min. Deductible
$1,200 $2,400 $1,200 $2,400
Max. Out of Pocket*
$6,050 $12,100 $6,050 $12,100
Health Savings AccountContribution Single Family
2012 $3,100 $6,250
Covers illness or injury after the deductible, and certain preventive care services at
no cost to you
Pays for Qualified Medical Expenses not covered by the Health
Plan.
*Out-of-pocket includes deductible & co-insurance
HSA Eligibility
Covered by qualified high-deductible health plan (HDHP)
Not covered by any other non-HDHPNot claimed as a dependent on another
person’s tax returnNot enrolled in Medicare
*Section 152 of the IRS Code excludes spouses from the definition of
dependent.
What is the catch-up contribution?
Year Catch-up Amount
2012 $1,000
Accountholders who are age 55 or older and not enrolled in Medicare can make catch-up
contributions
Note: Spouses of accountholders who are 55 or older and meet the IRS eligibility requirements can open their own HSA and make a catch-up contribution
What are Qualified Expenses?
A Qualified Expense is generally a medical expense incurred for you, your spouse or your dependents.
A complete list is provided in the IRS Publication 502 http://www.irs.gov/pub/irs-pdf/p502.pdf
Please consult a qualified tax advisor with questions
Other eligible medical expenses
Premiums for long-term care insuranceLimited to amount listed in 213 (d) (10)
Premiums for “COBRA”Premiums for coverage while receiving
unemployment compensationPremiums for individuals over age 65
Retirement health Plan PremiumsMedicare Premiums
Tax Treatment of HSAs
For Employees / AccountholdersContributions
Exclude (pre-tax) or Deducted (after tax) from Federal taxable income
EarningsHSAs grow in the same tax-deferred manner as IRAS
Tax Treatment of HSAs (Continued)
For Employees/ Accountholders Distributions
Withdrawals for qualified medial expenses are always tax-free. After age 65, funds may be withdrawn for any reason without penalty, subject to regular income tax.
Upon death of accountholder If the spouse is the beneficiary, the HSA may transfer to
the spouse’s name and remain a tax-favored account If the beneficiary is not the spouse, the funds are paid
to the beneficiary as a taxable transactionIf the HSA does not have a beneficiary, the funds are paid to
the estate of the accountholder.
HSAs, HRAs, FSAsHSA HRA FSA
Account Owner
Employee Employer Employee
Funding Employee,Employer,
Other
Employer Employee, Possible
Employer
Roll Over Year-to-Year
Yes Generally No
No
Portable Yes Generally No
No
Advantage of an HSA
For an EmployeeFunds roll over year to year
No need to “use it or lose it”Tax benefits on the contributions, earnings,
and distributionsPotential for increased take-home pay
Long-term investment opportunity
Thank You
If you have questions or need assistance contact us at 800-508-2265 or email
