Benefits of Having an HSA
With an HSA account, you basically have in your hands a tax-advantaged distribution any given time that you may need to pay for large medical costs. Aside from its convenience, other advantages from opening up your own HSA account include receiving income that is tax-free, any potential contributions provided by your employers may deducted from gross income, and your savings will become accumulated in your account until it is taken out or used.
Guidelines to Follow as of 2019
As of 2019, the minimum deductible accounts are still the same as the year before, which is $1,350 for self-only coverage, and $2,700 for family plans. The maximum account has increased; this year, the maximum out-of-pocket limits have become $6, 750 for individual plans, and $13,500 for family ones. Please be advised that because of ACA, the maximum for out-of-pocket limits cannot exceed the amount of $7,900.
Any individual with a health insurance policy that is legally qualified for an HSA is allowed to make contributions. The only exception would be if you have enrolled in Medicare. To ensure that your plan is eligible for an HSA, consult your insurer before making it official.
As for the contribution limits that can be made to your HSA, the yearly maximum amount as stated by the IRS are as follows: $3,500 for self-only, and $7,000 for families. The amount of allowed “catch-up” contribution reserved for consumers who are aged 55 or over remains to be $1,000 only. This should be confirmed with hsa guidelines 2018.
The kinds of insurance that you are allowed to have along with an HSA-eligible HDHP are very select. You cannot have one policy that overlaps with those of another medical plan, as this will make you ineligible to make contributions to an HSA.
Some factors that may end up ruling you out of your eligibility for an HSA are some benefits of prescribed medication, discount cards, indemnity plans for hospitalization, care from the Veteran Administration or the Indian Health Service, and other specific permitted and non-permitted coverage. You must make you sure you are fully educated of all the regulations by your employee or insurer before locking yourself in a health savings account.
To acquaint yourself with all the need-to-know information for HSA this year, you can check out this link for more information: https://livelyme.com/hsa-guide/