HSA Features

• Anyone can make current year deposits to the account, including spouses and employers.
• Annual deposit limits are based on the tax year, single or family health plan monthly coverage and the age of the member-owner.
• Individual deposits may be tax-deductible.
• No “use it or lose it” provision like Flexible Spending Accounts.
• The account belongs to you, even if you change jobs.
• Withdrawals are tax and penalty free if used for qualified medical expenses at any age.
• Withdrawals after age 65 are always penalty free (may not be tax free) regardless of the reason.

HSA Qualifications

• Must be covered exclusively by a High Deductible Health Plan (HDHP).
• Member-owner cannot be covered by other health plans, or claimed as a dependent on another individual’s federal income tax return.
• Member-owner cannot be enrolled in Medicare - they can be eligible for Medicare, but not actively enrolled.
• Member-owner cannot have received VA medical benefits within the last 3 months.

*Eligibility guidelines above are applied to new deposits only. Funds in an existing account can be used to pay for medical expenses even after the member-owner is no longer eligible for deposits.

**Visit www.irs.gov and go to IRS Publication 969 for detailed information regarding Health Savings Account features, benefits, and conditions.