Health Savings Account (HSA) Administration

CDSA-HSA
Benefits
  • Employees save on federal and state income tax, along with FICA and Medicare taxes on contributions made through a Flex plan
  • Unspent balances remain in your account and rollover to the following year
  • You may withdraw funds from your account for any eligible expense incurred on or after the opening of the account
  • The account is employee owned, which means the HSA will go with you to a new job, into retirement, etc.
Eligibility

Eligible individuals must be:

  • Covered by a High Deductible Health Plan (HDHP).
  • Not covered by other (non-high deductible) health insurance.*
  • Not currently receiving Medicare benefits.
  • Not claimed as a dependent on someone else’s tax return.
High Deductible Health Plan (HDHP) definition for 2019
  • Single Coverage
    • Minimum $1,350 deductible
    • Maximum Out-Of-Pocket Expenses not to exceed $6,750
  • Family Coverage
    • Minimum $2,700 deductible
    • Maximum Out-Of-Pocket Expenses not to exceed $13,500
Contributions for 2019

Maximum annual contribution is $3,500 for individual coverage or $7,000 for family coverage.

Catch-up contributions for individual age 55 or older: additional $1,000 for 2019.

Contributions can be made by the employer, the individual, or both.

Contributions made through a Section 125 Cafeteria Plan are pre-tax to federal, FICA, Medicare, and Minnesota state taxes.

High Deductible Health Plan (HDHP) definition for 2018
  • Single Coverage
    • Minimum $1,350 deductible
    • Maximum Out-Of-Pocket Expenses not to exceed $6,650
  • Family Coverage
    • Minimum $2,700 deductible
    • Maximum Out-Of-Pocket Expenses not to exceed $13,300
Contributions for 2018

Maximum annual contribution is $3,450 for individual coverage or $6,900 for family coverage.

Catch-up contributions for individual age 55 or older: additional $1,000 for 2018.

Contributions can be made by the employer, the individual, or both.

Contributions made through a Section 125 Cafeteria Plan are pre-tax to federal, FICA, Medicare, and Minnesota state taxes.

What responsibility does the HSA account holder have?

Follow the guidelines for a HDHP, and have no other impermissible insurance coverage.

Do not exceed the contribution limit for the year.

Keep records of all qualified medical expenses submitted for reimbursement in the case of an IRS audit (“shoe-box rule”).

Report the distributions from an HSA on Form 8889 as an attachment to Form 1040.

*Ineligible coverage types are: personal non-high deductible plans, group non-high deductible plans, VEBAs, Full Medical Flex Spending Plans, Minnesota Care, Medicaid, VA Medical Benefits , Tricare, and some HRAs.

 

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