FAQs about Health Savings Accounts (HSA)
How much can I contribute to an HSA?
For 2020, the contribution limit is $3,550. For more detailed information, please check here.
What happens to my HSA balance in the case where I can no longer contribute new money?
Can you coordinate an HSA with a cafeteria plan?
If I lose my job, what happens to my HSA?
Who is eligible to open an HSA?
Anyone, individuals, employees and employers, can open an HSA but you must have a qualified high deductible health policy. An HSA can be established for any individual that meets all of the following:
- is covered by a HSA qualified high deductible health plan
- is not covered by another health plan
- is not eligible to be claimed as a dependent on another person’s tax return
- is not entitled to Medicare benefits
My spouse has a health policy through her employer, am I eligible?
Will my account be protected?
What if I don’t have a high deductible health insurance policy?
How much can I contribute to my HSA?
The guidelines for contribution maximums are shown below:
Self-only coverage $3,550 $3,600
Family coverage $7,100 $7,200
Do I need to fund my entire HSA all at once or can I fund it over time?
You can fund your account over time or all at once. Also, one of the large benefits for employees is that contributions can be tax free (an individuals’ contributions are made on a pre-tax basis) if offered as a part of your Employer’s cafeteria plan.
What can I spend my HSA funds on?
What documentation is needed to open an account?
To be in compliance with the USA Patriot Act, TaxSaver must provide certain information to our HSA Bank Partner to open your HSA. This information is provided to TaxSaver Plan by your Employer, via a secure eligibility file process. If the information provided to our HSA Bank Partner does not match the information that they pull from their resources of public data, Bancorp and / or TaxSaver Plan will contact you to provide additional information to Bancorp to verify your identity. This is for your protection as well as a government requirement when opening any bank account. Therefore, you may be asked to provide additional information and documentation before your account can be established.
The additional information requested may be any one or combination of the following:
- copy of your current driver’s license
- current government issued passport
- IRS Form W-2
- Social Security Card
- a current utility bill showing your address
My debit card number is not being recognized during the account registration process on the HSA section of the website...
When can I begin using my HSA to pay eligible expenses?
Is there a required minimum deductible to qualify?
For 2020 and 2021, the minimum annual deductible for self-only HDHP coverage is $1,400.
The minimum annual deductible for family HDHP coverage is $2,800 for 2020 and 2021.
Is there an out-of-pocket maximum?
The 2020 maximum limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) for self-only HDHP coverage is $6,900 and the limit for family HDHP coverage is $13,800. For 2021, the out-of-pocket limits will be $7,000 for self-only and $14,000 for family.