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HSA Facts
* HSAs provide you with an alternative method to help pay for
health care expenses and plan for retirement, providing you
with more control over your health care dollars.
* 77% of purchasers have families with children. 70% of purchasers
are over age 40. 45% of purchasers are from households with four
or more people.
* HSAs are tax-deductible, interest-bearing accounts that permit
unused funds to roll over from year to year, even if you change
employment. They are similar to IRAs.
* HSAs must be combined with a qualified HDHP (High
Deductible Healthcare Plan). See graphic
Contributions to Your Savings Account
* Contributions may be made by employers, employees, or
individuals.
* You may contribute up to 100% of your health plan's deductible.
The maximum annual contribution is $2,700 for a single-person
policy and $5,450 for a family policy in 2006. These amounts
will be adjusted for inflation annually.
* Once the deductible is met, the remaining health expenses are
paid according to the plan's benefits. If you have a 100%
coinsurance plan, all remaining expenses will be paid
by the carrier. If you have an 80/20 coinsurance plan, 80%
of the remaining expenses will be paid by the carrier.
* Any individual with a HDHP (High Deductible Healthcare Plan)
may contribute to an HSA. Individuals over age 65 who are
NOT eligible for Medicare may also contribute to an HSA.
Individuals between the ages of 55 and 65 and those over 65
who are not eligible for Medicare may make additional
"catch-up" contributions.
Distributions from Your Savings Account
* HSA distributions are tax-free if they are used to pay for
qualified medical expenses. Distributions for any other
purpose are taxable and subject to an additional 10% penalty.
Distributions may be made for qualified expenses, even those
not covered by your health plan -- for example, dental expenses.
For an IRS publication regarding qualified medical expenses,
* Once you are 65 years old, the money may be used to pay for
health expenses and certain insurance premiums such as
Medicare Parts A and B, Medicare HMO, and your share of
your retiree medical insurance.
Will the plan work for you? Click here for some sample illustrations:
For a personalized quote, click on the links below or give us a call
at (303) 721-1145!
The above information does not constitute legal, tax or other benefit plan design
advice. Roper Insurance strongly encourages consultation with a tax advisor before
establishing a Health Savings Account. Any Health Savings Account will be
established between the individual account holder and the HSA custodian or
trustee. Roper Insurance is not responsible for the administration of the
health plan or the administration of the HSA.
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