basic hsa concept/media/files/hsa_adv… · ppt file · web view · 2011-12-21distribution...
TRANSCRIPT
Basic HSA Plan Concept
Part II: Health Savings Account
HSA Concept
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.
2011 Single Family
Min. Deductible $1,200 $2,400
Max. Out of Pocket $5,950 $11,9002012 Single Family
Min. Deductible $1,200 $2,400
Max. Out of Pocket $6,050 $12,100
Part I: High Deductible Health Plan
Max. Contribution Single Family2011 $3,050 $6,150
2012 $3,100 $6,250
Basic HSA Concept
Contributions
Contributions
EarningsTax-Deferred
Growth
Tax-Deductible/ Pre-Tax Contributions
Tax-Free Distributions(For Qualified Medical Expenses)
HSA
Normal Tax(NON-qualified expenses if you are 65 or older)
- Compare to an IRA
Who is Eligible for an HSA?
Not covered by any other non HSA-compatible health plan
Not claimed as a dependent on another person’s tax return (excluding spouses per Internal Revenue Code)
Not enrolled in Medicare
Individuals who are covered by an HSA-compatible health plan are qualified if they are:
Advantages of an HSA
» Funds roll over from year to year» No “use it or lose it” provision
» Tax benefits on contributions, earnings and distributions
» Contributions are either pre-tax (via paycheck) or tax-deductible
» Portability» Funds follow you » Tax-free withdrawals for Qualified Medical Expenses even if
qualifying coverage ends
» Long-term investment opportunities» (Not FDIC insured)
» Control over healthcare dollars
Contributions Options
» How are they made» Online» Check» Rollover (HSA or IRA)» Catch-up
Contribution
» Who makes them» Accountholder» Employer» Third-party
Year Individual Family2011 $3,050 $6,150
2012 $3,100 $6,250
» Maximum Limit
Accountholders covered under an HSA-compatible health plan who are age 55 or older and not enrolled in Medicare are eligible to make an annual catch-up contribution of $1,000
An accountholder’s spouse must have their own HSA, be age 55 or older and not be enrolled in Medicare to be eligible to make the catch-up contribution.
Distribution Options
• Debit card from Visa®
• Reimbursement from HSA Bank through Internet Banking by linking customer’s Personal Bank account to their HSA account and scheduling a bank to bank transfer of funds
• HSA checks• Withdrawal Form
– Mail to HSA Bank
Eligible Medical Expenses
» Doctor and hospital visits» Medical equipment» Dental care, braces,
dentures» Vision care, glasses,
contacts» Prescription medications
You can use your Health Savings Account (HSA) to pay for a wide range of eligiblemedical expenses for yourself, your spouse or tax dependents. Funds used to pay foreligible medical expenses are always tax-free and you can continue to use your HSA
funds even if you’re not covered by an HSA-compatible plan.
*A list of Qualified Medical Expenses can be found in IRS Publication 502, http://www.irs.gov/pub/irs-pdf/p502.pdf. As described in IRS publication 969, http://www.irs.gov/pub/irs-pdf/p969.pdf, over-the- counter medications are considered Qualified Medical Expenses for HSA purposes.
» Premiums for long-term care insurance
» Premiums for COBRA» Premiums for coverage
while receiving unemployment compensation
» Premiums for individuals over age 65
Account & Investments» Savings Account» Interest bearing and FDIC insured
» (Rates subject to change visit www.hsabank.com)» Self-directed Brokerage (Not FDIC Insured)
» Stocks, bonds and thousands of mutual funds» Mutual Fund Platform (Not FDIC Insured)
» Top performing mutual fund suite similar to 401K
Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by HSA bank, and are subject to investment risks.
Investment Options
Spanish Resources
• Customer Service (866) 357-6232 7 a.m. – 9 p.m., CT, Monday – Friday
• Forms• Website