This past week some co-workers and I had an informative lunch meeting with Pinnacle Bank regarding information on Health Savings Accounts. Our enrollment and service teams receive questions daily about the qualifications and requirements for having an HSA account. If you don’t already know, an HSA works in conjunction with a High Deductible Health Plan (HDHP). You are able to pay for health expenses and save for future qualified medical expenses on a pre-tax basis. If you do not spend all of the money in the account by the end of the year, the money stays in the account and you can continue to earn interest. At age 65, funds can be withdrawn without tax penalty.
Some questions we are frequently asked are below:
How do I contribute to my HSA?
- As long as you are covered by a HDHP, you can deposit money into your account, by payroll deductions or transfer from another account.
How much can I contribute to my HSA?
- For the plan year 2022, an individual can contribute $3,650 and $7,300 for family coverage.
How do I access the funds in my HSA?
- Your HSA will operate like a checking account, you will receive a debit card for qualified purchases. Any non-medical expenditures could be subject to a tax penalty.
Who controls my HSA account?
- You (the employee) are the owner of the account and therefore control the funds and how they are spent.
These are a few basic FAQ’s we receive each day. For more information on your HSA or opening an HSA account, give us a call!