Health Savings Account (HSA) Administration

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 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.

Let us exceed your expectations. Contact Nicholle Peterson at (888) 388-1040 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.

 

Resources

View All Health Savings Account Plans Resources