An HSA is a personal bank account created exclusively for individuals to pay for eligible healthcare expenses and save for future healthcare expenses tax-free.

You are eligible as long as:

• You are a participant in an eligible High Deductible Health Plan (HDHP)
• You are not covered by any other health insurance plan that is not an HDHP
• You yourself are not covered by Medicare
• You yourself have not received healthcare benefits (other than dental, vision, preventive or service related) from the Veterans Administration within the last three months, including prescriptions
• You are not active-duty military with Tricare coverage
• You are not claimed as a dependent on another person’s tax return
• You or your spouse are not participating in a full Health FSA (Limited-Purpose FSAs are allowed)

• Contributions are tax free
• Earnings are tax free
• Withdrawals are tax free when made for eligible medical care expenses

A HDHP is a health plan with an annual deductible for an individual (self only) or a family (coverage for more than one individual) that meets the minimum deductible amount published annually by the U.S. Treasury Department.

The insurance carrier should verify and guarantee that the HDHP meets IRS regulations to ensure your HSA is qualified.

You choose how much to set aside for healthcare expenses, up to the IRS maximum.

2024:

• $4,150 for single HDHP coverage
• $8,300 for family HDHP coverage

Age 55 and older can contribute an additional $1,000 annually (Catch-up Contribution)

The HSA account holder, employer, family member, or any other person is able to make an HSA contribution.  Employer contributions are subject to the IRS Comparability Rules if the HSA is not offered through the cafeteria plan.  The Comparability Rules do not apply when the HSA is offered through a cafeteria plan.  The HSA is subject to the cafeteria plan non-discrimination rules when offered this way.

April 15th following the year for which the contributions were made is the HSA contribution deadline.

Individuals who are covered by a High Deductible Health Plan (HDHP) may participate in an HSA.

Individuals may be excluded from an HSA if they are:

• Covered under a spouse’s or dependent employer’s health plan that is not a HDHP.
• Claimed on someone else’s taxes
• Covered by Medicare (Part A and/or Part B)
• Covered under a health FSA or HRSA, unless the coverage under the HRA or FSA is limited to permitted benefits or specific benefits not provided by the HDHP

The eligibility requirements of the cafeteria plan apply if the HSA is offered through an employer’s cafeteria plan.  Sub S Corporation owners, their spouses and dependents employed by the company may not participate in an HSA.  Neither can sole-proprietors, 2% or more owners in partnership, limited liability partnerships or limited liability corporations.

The HSA becomes effective immediately following the individual passing the U.S.A. Patriot Act. Once the individual passes the U.S.A. Patriot Act, the individual will receive an email notifying them of their HSA account activation and to login to the portal to view their account and use their funds.

The HSA effective date cannot be backdated to when your HDHP was established.

If the Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) is unlimited, through your employer or your spouse’s employer, you are not eligible for an HSA.

If you have a Limited FSA or HRA is limited to dental, vision and/or preventive care expenses, you can have it with the HSA.

It is the participant’s responsibility to maintain IRS compliance within their employees benefit plan.

No, HR Simplified does not require documentation for transactions or withdrawals/distributions from your HSA.  HR Simplified recommends that you keep documentation of any expenses for your personal records should you be audited.

A distribution or withdrawal from the HSA may be taken out at any time by the account holder.  Qualified medical expenses not covered by the high deductible health plan are distributed tax-free.  If you need help logging into your account, please contact HR Simplified.

According to HIPAA regulations, HR Simplified cannot disclose your personal health information (PHI) to any unauthorized representatives.

Please complete the Release of Information Form that is located in the participant portal under the Resource tab.  Once this form is completed to its entirety, the individual will have authorization to discuss account details.  Should the account holder want to have the authorized individuals denied access to their account in the future, the account holder would need to send a request in writing to HR Simplified with their signature.

The U.S.A. Patriot Act requires all financial institutions to obtain, verify, and record information that identifies each person who opens an HSA. Your name, street address, date of birth, and other information that will allow us to identify you will be asked upon enrollment. Once the individual completes the U.S.A. Patriot Act requirement and your identity has been verified, access to your HSA account will be unblocked and made available to you. If your identity is not verified (i.e. if you moved recently and your new address is not on file with the appropriate government agency), you may be asked to provide proof of your identity by providing a cop of your utility bill to verify your address or a copy of your Social Security card if the number does not match the verifying source’s records.