HSA
WE SPEAK HSA, DO YOU?
Health Savings Accounts (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 through Group Insurance or Individual Insurance, and are used in conjunction with a “Qualified High Deductible Health Plan” (QDHP). HSAs must be set up in accordance with numerous IRS guidelines.
We would be happy to offer a one-on-one discussion about how a Health Savings Account can benefit you. Give us a call today.
Important HSA News about COVID-19
- Hand sanitizer, face masks and other PPE are now HSA eligible.
| HSA CONTRIBUTIONS FOR 2023 | ||||
|---|---|---|---|---|
| Minimum | Maximum | |||
| Deductible | Out-Of Pocket | Contribution Limit | 55+ Contribution | |
| Single | $1,500 | $7,500 | $3,850 | $1,000 |
| Family | $3,000 | $15,000 | $7,750 | $1,000 |
| HSA CONTRIBUTIONS FOR 2024 | ||||
| Minimum | Maximum | |||
| Deductible | Out-Of Pocket | Contribution Limit | 55+ Contribution | |
| Single | $1,600 | $8,050 | $4,150 | $1,000 |
| Family | $3,200 | $16,100 | $8,300 | $1,000 |
What do I need to receive Tax Savings?
- To open a Health Savings account, you must have both a Qualified High Deductible Health Plan (QHDHP) and a Health Savings Account.
How can HSAs benefit me?
- Health Savings Accounts are designed to empower the insured by giving you more control over your money. You retain the freedom to use your HSA funds when and how you see fit. Unused contributions accumulate year after year and can be used for retirement funds. They offer lower premiums, so you can contribute more to your own savings. In addition, HSAs can provide significant tax savings.
How do I set up an HSA?
- Health Savings Accounts must be used in conjunction with a Qualified High Deductible Health Plan (QHDHP). We can evaluate whether your current Health Plan qualifies and make recommendations for changing your plan if it doesn’t. There are many options when selecting a bank to open your Health Savings Account. 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. Many insurance carriers have preferred banking institutions that may offer specialized HSA accounts. 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!
What should I expect from an institution offering HSA accounts?
- Institutions offering HSA accounts should offer debit cards and/or checks so that you can make withdrawals as needed. Your account should also have the 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 the account. Investment options are available in many accounts, but require at least one year’s deductible to be available at all times. Fees for Health Savings Accounts are generally nominal and might include monthly or yearly fees, check or debit card fees, and ATM use fees.
What changes can I expect for HSAs in 2024?
- As of January 1, 2024, contribution limits are increasing by $300 for individual participants and $550 for those who participate at the family level. Those with self-only coverage will therefore get to contribute $4,150 a year, and those contributing on behalf of a family can put in $8,300. The $1,000 catch-up contribution for older workers remains as is.
- The out-of-pocket maximum threshold will rise to $8,050 for individual coverage and $16,100 for coverage at the family level.
