Below are some of the more commonly asked questions we receive from employees
Can anyone open an HSA?
No. In order to open an HSA you have to be an "eligible individual." To be an eligible individual you must meet all of the following: (1) be covered under a high deductible health plan (HDHP), (2) not be enrolled in Medicare, (3) not be a dependent on another person's return, and (4) not covered under another health plan.
If my spouse has a non-HDHP would that prohibit me from getting an HDHP?
Generally, no. As long as your spouse's non-HDHP does not cover you, you remain an eligible individual and can participate in an HSA. If your spouse had a family non-HDHP and you were not exempted from that coverage then you would not be an eligible individual and would not be able to participate in an HSA. However, if, for example, your spouse had a family non-HDHP to cover himself and your two children only, then you would still be eligible to open an HSA.
I have an HDHP through my employer but my employer does not offer an HSA can I still have one?
Yes. The HSA belongs to the individual not the employer and any eligible individual may open an HSA. As long as you are covered under a High Deductible Health Plan (HDHP) you may open and contribute to an HSA.
My wife and I have family coverage, can we both open an HSA?
Yes. You may both open an HSA however, the total amount that may be contributed to your HSAs is still the contribution limit (see below).
How much can I contribute to my HSA?
For the year 2007 the contribution limits are $2,850 ($2,900 in 2008) for individual plans or $5,650 ($5,800 in 2008) for family plans. This amount may be increased by the catch-up contribution for those eligible (see below for more on catch-up contributions).
My employer only funded a portion of my HSA can I still contribute to it?
Yes. You may fully fund your HSA up to the contribution limit (see our Eligibility & Contribution Worksheet to determine your contribution limit).
What is a catch-up contribution?
A catch-up contribution is an allowance for additional HSA contributions that may be made by individuals age 55 to 65. For 2008 the catch-up contribution limit is $900 ($800 for 2007). This means that any eligible individual turning 55 or older may contribute an additional $900 more than their contribution limit during 2008 ($800 in 2007). Catch-up contributions are not pro-rated based on the individual's birthdate but are pro-rated based on the insurance effective date.
I am age 65 and covered under an HDHP can I still contribute to my HSA?
As long as you have not enrolled in Medicare Part A or B you are an eligible individual and may contribute to your HSA. Once you enroll in Medicare you may no longer contribute to your HSA.
What expenses are qualified medical expenses?
Qualified expenses include most normal medical expenses such as:
- Doctor visits
- Prescription and over the counter drugs
- Dental services
- Vision care (including contact lenses, glasses and Lasik surgery)
- View a complete list of qualified medical expenses.
I am covered under an individual HDHP, can I use my HDHP to pay for my son's glasses?
Yes. Even though your health plan only covers yourself, you may use your HSA funds to pay for the qualified medical expenses of yourself, your spouse and your dependents.
Can I deduct the amount my employer put into my HSA?
No. The only amount you may deduct from your gross income is the amount of non-employer funds that were added to your account during the tax year. To determine how much you may deduct on your taxes please see our Tax Savings Worksheet.
If I lose my job, what happens my HSA?
Your HSA belongs to you regardless of your employment. If you lose your job and elect to retain your HDHP under COBRA you may even pay the COBRA premiums from your HSA.
