Who is Eligible for a Health Savings Account?
Do you know what an ambulance, reading glasses, and a thermometer all have in common?
They are all qualified medical expenses (QMEs) through a health savings account (HSA).
That’s right, everything from hearing aids to your visit to the chiropractor can be covered by the money you contribute to your HSA. And you might be surprised just how many things are considered an HSA eligible expense.
Am I Eligible for an HSA?
Not everyone can open an HSA. But with high-deductible health plans (HDHPs) gaining in popularity, more and more people are taking advantage of HSAs. These triple tax-advantaged savings accounts are designed specifically to cover medical expenses.
But in order to open an HSA, you need to meet a few requirements.
HSA Eligibility Requirements
1. You’re enrolled in a high-deductible health plan.
In 2020, that looks like having a health insurance plan with a minimum deductible of $1,400 for single coverage or $2,800 for family coverage. The maximum out-of-pocket expense is $6,900 for individuals and $13,800 for families.
2. You’re not enrolled in Medicare.
3. You’re 18 years or older and no one can claim you as a dependent on their tax return.
Give us a call today to learn more about the benefits of an HSA at 734-681-7575.
EP 030: THE HSA NO-BRAINER
Health savings accounts, or "HSA" for short, have been around since 2003, when President Bush improved upon medical savings accounts and flexible savings accounts. HSAs are superior compared to their predecessors because of the triple-tax-free benefits and they are not “use it or lose it.” They are becoming more and more important as our healthcare cost crisis continues, and I predict your HSA will play a significant role in the years to come. Listen in to find out why.