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Health Savings Account (HSA)
What is a Health Savings Account (HSA)?
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for qualified medical and retiree health expenses on a tax-free basis. An HSA combines a savings account with a High Deductible Health Plan (HDHP). The money you deposit into the HSA account is not taxed if it is used to pay for current and future qualified medical expenses. For further details on HSA, go to the contact us page.
Can MSAs be rolled into HSAs?
Yes. MSAs can be rolled into HSAs on a tax-free basis and will count toward the HSA contribution limit. You should consult with your tax advisor for details.
Who is eligible for an HSA?
Anyone who is not entitled to Medicare and cannot be claimed as a dependent on another person? return can qualify for an HSA but must have a qualified HDHP and no other similar health insurance.
What is the maximum annual contribution for the HSA?
The 2008 annual contribution to the HSA is $2900 for an individual and $5800 for a family. Individuals aged 55 until enrolled in Medicare can make additional catch-up contributions of $900 in 2008. These amounts are subject to annual cost-of-living adjustments.
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