![]() ![]() HRAs are typically combined with a health plan with a high deductible. If you have HSA questions, contact the organization that administers your account.Īn HRA is an employer-funded tax-free account that that you can use to pay for qualified medical care expenses. ![]() Your HSA is administered by a trustee/custodian (typically a bank).You own the money in your HSA - even when you change plans, change jobs, or retire.Unused funds and earnings are carried over, without limit, from year to year.(You can withdraw money for non-medical reasons, but you’ll need to pay taxes on it.) Withdrawals for qualified medical expenses are tax-free.Often, your account balance has to reach a certain level before you can earn interest or invest it. ![]() Interest or investment returns earned on your account are tax-free.Your HSA contributions are tax-deductible (if you participate through your employer’s plan, your contributions may be deducted from your paycheck pre-tax).(Once you’re enrolled in Medicare, you can’t contribute to an HSA but you can still withdraw money tax-free to pay health care expenses.) If you are 55 or older, your contribution limit is higher. The IRS sets a limit on how much can be contributed to your account each year. It gives you a way to save up for planned or unexpected medical expenses, or save for health care expenses in retirement. You can use your HSA to pay for qualified health care expenses for you, your spouse and/or your eligible tax dependents. The funds may be used to pay for your plan deductible and/or other qualified medical expenses that do not count towards your deductible. There are other eligibility rules set by the IRS, so be sure you ask about those before you start contributing.Īn HSA is a tax-exempt account that belongs to you. For calendar year 2019 the annual limitation for deductible for an individual is $3,500 and for a family is $7,000. You don’t need to have health coverage through an employer to set up and contribute to an HSA, but you do need to be enrolled in a high deductible health plan that meets Internal Revenue Service (IRS) requirements. There are several types of accounts available to help you save on your taxes and manage your medical costs. ![]()
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