- Reimbursements from a health savings account, used to pay for out-of-pocket medical expenses, are received 100% tax free.
- Account contributions are based on the annual contribution limits set by the U.S. Treasury, adjusted yearly.
- Catch-up contributions are also allowed for individual's age 55 or older.
- Benefits are payable once the individual or family deductible is met on a calendar-year basis.
- An HSA insurance plan is either an individual plan or a family plan (2 or more) for purposes of meeting the deductible limit.
- Preventive care services and accident riders, if available, are not subject to the deductible.
- Funds in an HSA savings account may be invested as the account holder sees fit, including CDs, money market and mutual funds, stocks, bonds, or other securities, using an HSA custodian.
What can be paid for out of the savings account?
- "Eligible medical expenses" allow for tax-free reimbursements on items of traditional medical care not typically covered by a health insurance policy, such as:
- dental, vision, chiropractic, mental health, long term care services and insurance premiums, etc. Preventive care services and accident riders, if available, are not subject to the deductible.
Contributions made to a qualified savings account become available to the owner at age 65 for any purpose - another way to save!