Q: What do I need to receive Tax Savings?



HSAs are a special savings account owned by an individual where contributions to the account can be used for current and future medical expenses
HSAs are available with either Group Insurance or Individual Insurance
HSAs are used in conjunction with a “High Deductible Health Plan” (HDHP)
HSAs must be set up in accordance with numerous IRS guidelines

How can HSAs benefit you?»
How do I go about setting up an HSA, once I have a QHDHP?»
What should I expect from an institution offering HSA accounts?»
IRS changes for 2007 (highlights)»

For additional assistance, reference the following documents:

HSA – List of Qualified Expenses
IRS – Publication 502 “Medical and Dental Expenses”
Eligible Over-the-Counter Drugs



Minimum Deductible Maximum Out-Of Pocket Contribution Limit 55+ Contribution
Single $1,300 $6,450 $3,350 $1,000
Family $2,600 $12,900 $6,650 $1,000



Minimum Deductible Maximum Out-Of Pocket Contribution Limit 55+ Contribution
Single $1,300 $6,550 $3,350 $1,000
Family $2,600 $13,100 $6,750 $1,000


As an HSA account holder you have made a conscious choice to become empowered with regard to how your healthcare dollars are spent. Along with that comes responsibility, the responsibility to prove to the IRS that the distributions were for qualified medical expenses. For free copies of the IRS guidelines, please e-mail us at mah@mljinsurance.com»

What happens to the medical charges once I receive treatment?

We would be happy to offer a one-on-one discussion of how a HSA can benefit you!

There are many options when selecting a bank to open your Health Savings Account (HSA) at. As we are not a representative of any particular bank, we will be unable to assist you with the account itself, but we are always happy to assist with any questions as to the functioning of the HSA account. However, we do recommend UMB’s HSA account. The UMB HSA allows you to pay for your current healthcare expenses or to save money for future qualified expenses. Opening your UMB HSA is easy. You can complete all of your enrollment forms online!

  • HSAs are designed to empower the insured
  • Tax savings for you
  • Unused contributions accumulate year after year and can be used for retirement funds
  • Freedom to use your HSA funds when and how you see it
  • Lower premiums, so you can contribute more to your own savings
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  • Your local banking institution may offer specialized HSA accounts
  • Many insurance carriers have preferred banking institutions they refer to
  • Online banking institutions offer the specialized HSA accounts
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  • Debit cards and/or checks should be available to make withdrawals.
  • Ability to gain interest on the funds in the account.
    • Some institutions offer a flat rate while others offer an incremented amount based upon total funds in account
  • Investment options are available in many accounts.
    • Please keep in mind the need to have at least one year’s deductible available readily
  • Fees are normal. These vary by institution. Listed below are some common ones:
    • Monthly fees
    • Yearly fees
    • Additional check fees
    • Debit card fees
    • ATM use fee
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  • Annual maximum contribution no longer determined by the HDHP (High Deductible Health Plan) deductible. IRS annual maximums are the limit.
  • Regardless of the month of the year your HDHP (High Deductible Health Plan) begins, the annual maximum contribution is allowed. (There may be loss of the right to contribute if the HDHP is not kept in force for a time.)
  • One-time rollover from other qualified accounts allowed under the “hardship” description.
  • Cost of living adjustments to be announced earlier in the year preceding the adjustment.
  • Employer contributions rules have been modified.
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  • Keep receipts that show the product, i.e.: prescription, contact lenses solution, or doctor/facility office name.
  • Attach these receipts to any paperwork you receive from the Third-party Administrator/Custodian showing the disbursement taken from the HSA account.
  • At the end of year you will receive a 5304 form that will have the years entire disbursement amount, attach all of the receipts to show the expenditure to this. (The total of all receipts should exactly match the amount on the 5304 form.)
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