Health Savings Accounts
Health Savings Accounts (HSA) are a tax-exempt trust or custodial account that you can establish with a qualified HSA trustee that can be used to pay for or reimburse yourself for medical, dental and vision expenses that you incur.
The Benefits of Health Savings Accounts (HSA) Include:
- You can claim a tax deduction for contributions made to your HSA.
- Contributions to your HSA made by your employee may be excluded from your gross income.
- Contributions remain in your account from year to year until you use them.
- Interest or other earnings on the assets in your HSA are tax-free.
Some of the Rules that Apply to Health Savings Accounts Include:
- In order to participate in an HSA you must be a participant in a high-deductible health plan (HDHP).
- An HDHP, at a minimum, must provide for a deductible of at least $1,350 for single individuals and $2,700 for participants with one or more covered dependents.
- The limit that you can contribute to an HSA for 2018 is $3,450 for single individuals and $6,850 for individuals with coverage that includes one or more covered dependents.
For other rules please click here: www.irs.gov/publications/p969/index.html to view IRS Publication 969.
If you have questions, please give us a call or contact us online. We will be happy to assist you.