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Insurance Innovations can help you establish this tax-friendly account designed to help you save
and pay for medical expenses.
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Money contributed to your HSA and used for approved medical
expenses is tax-free.
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You, your employer, or a family member can contribute to your HSA.
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You can deduct contributions you make to your
HSA and exclude
employer contributions from your gross income.
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Contributions remain available in your account from year to year
until you use them.
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HSAs are portable, so the account stays with you if you change
employers or leave the work force.
What is an HSA?
An HSA is a tax-exempt account you can set up through qualified HSA Custodian, such as a bank, credit union, financial institution, or insurance company. Funds that you, an
employer, or a family member contribute to this account are
then used by you to pay for certain medical expenses you incur.
When used to pay for qualified medical expenses, funds contributed to
your HSA are tax-exempt. Even better,
you can roll over your account balance from year to year, so
you don't lose what you don't use.
What do I need
to do to set up an HSA?
To set up an HSA, you need to work with a qualified HSA Custodian, typically a bank, credit union, financial institution, or insurance company. You also need to meet certain qualifying criteria
(see our FAQs for details). No
permission or authorization from the IRS is necessary. Contact us for more information about HSA Custodians for non-credit union members.
Who qualifies?
To set up an HSA as an eligible individual, you...
- must be enrolled in a high deductible health plan (HDHP)
and have no other health coverage except for
specific exceptions as permitted by the IRS (see our
FAQs for details).
- must not be enrolled in Medicare.
- cannot be claimed as a dependent on someone
else's tax return.
Spouses must open separate HSAs. Spouses cannot have
joint accounts.
Contributions to
an HSA
Any eligible individual can contribute to an HSA. Whether
you are an employee, self-employed, or unemployed, you or
your employer may contribute. Additionally, family members
or any other person may also contribute on behalf of an
eligible individual. There are limits on contributions,
however. Please see our FAQs for
more information.
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