HSAS EMPOWER SAVINGS NOW AND FOR THE FUTURE
Employees covered under a High Deductible Health Plan (HDHP) are eligible to participate in an HSA — a tax-advantaged savings and investment vehicle that offers three separate tax benefits: 1) Contributions are pre-tax 2) Withdrawals for qualified expenses are tax-free, and 3) Earned interest on investment funds is tax-free.
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 2021
- Single Coverage
- Minimum $1,400 deductible
- Maximum Out-Of-Pocket Expenses not to exceed $7,000
- Family Coverage
- Minimum $2,800 deductible
- Maximum Out-Of-Pocket Expenses not to exceed $14,000
Contributions for 2021
- Maximum annual contribution is $3,600 for individual coverage or $7,200 for family coverage.
- Catch-up contributions for individual age 55 or older: additional $1,000.
- 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.
Let us exceed your expectations. Contact Nicholle Peterson at (320) 214-2921 to learn more.
*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.
