HSAs are employee-owned savings accounts that allow for pre-taxed deductions from their paychecks to go towards medical expenses. Employees MUST have an HDHP in order to contribute to an HSA.
Employees may accumulate an unlimited amount of money in their HSAs and those funds may roll over from year to year.
Both the employee and the employer can contribute to an individual’s HSA during the year.¹
- The annual limit on deductions for an individual with self-only coverage under a high-deductible health plan (HDHP) is $3,350 and for and individual with family coverage, it is $6,650.
- An HDHP is defined as having a deductible not less than $1,300 for individual coverage or $2,600 for family coverage and with annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) not exceeding $6,550 for individual coverage or $13,100 for family coverage.
For more information, and to find out if an HSA is right for you, call Shannon McMeel today!