A Health Savings Account (HSA) is designed to help you save money for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment.
Any adult can contribute to an HSA if they:
- Have coverage under an HSA-qualified “high deductible health plan” (HDHP) (Ask your HR department if you are unsure.)
- Have no other first-dollar medical coverage (other types of insurance, like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
- Are not enrolled in Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
Contributions to your HSA may be made by you, your employer, or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.
Brochures with more detailed information about Health Savings Accounts are available at all TelComm locations. Drop by and pick one up anytime!
2020 Tax Year: Single Coverage Annual Limit= $3,500
2020 Tax Year: Family Coverage Annual Limit= $7,000
2020 HSA Catch-Up Contribution Limits for Owners Age 55 + is $1,000 per year.
To learn more about Health Savings Accounts, click here.