An HSA is an individual bank account that allows you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-advantaged basis.
If you or your employer are tired of the high costs of health insurance and premiums, and would prefer to keep that money for yourself to spend as you need healthcare, or save for the future, you should look into a Health Savings Account.
To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other non-HDHP health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care or long-term care), must not be enrolled in Medicare and can’t be claimed as a dependent on someone else’s tax return.
A High Deductible Health Plan is a health insurance plan that meets IRS guidelines for minimum deductibles and maximum out of pocket expenses. An HSA qualified HDHP can have first dollar coverage (no deductible) for preventative care and higher out-of-pocket (co-pays and coinsurance) for non-network services.
See HSA Federal Guidelines for detailed information. IRS limits for deductibles and out of pocket maximums typically change each year.
Contributions to HSAs can be made by either the employer or the individual, or both. If after-tax contributions are made by the individual, it is an “above-the-line” deduction. If contributions are made by the employer, it is not taxable to the employee (excluded from income). Employee contributions can also be made through payroll on a pre-tax basis.
The maximum contribution is based on IRS limits and is indexed annually. See HSA Federal Guidelines for current year limits. Individuals age 55 and over may also contribute a catch-up contribution, which is also indexed annually.
Yes, any unused funds in a Health Savings Account roll over each year. Funds can earn interest - tax free - in a variety of mutual funds which are not FDIC insured. CD’s are also available.
A list of allowable expenses can be found on the Eligible Expenses page of this website. For a full list of IRS-qualified medical expenses, please review IRS Publication 502.
In general, you can use your tax-advantaged HSA dollars on medical, dental (including braces for your children) and vision expenses, chiropractic visits, and even acupuncture, but not on your insurance premium, unless you are unemployed and are collecting Federal unemployment benefits.
Fill out the Name Change Form or Address Change Form. Completed forms can be faxed, or mailed to Old National Bank-HSA Processing. The contact information is listed at the top of the form.
Yes, you can spend money out of your Health Savings Account for non-medical expenses; however, you will pay income tax and a 20 percent penalty for a non-medical withdrawal prior to age 65.
