HSA Guidelines
Federal Guidelines
Your tax-favored HSA has some federal stipulations such as eligibility guidelines and annual contribution limits.
Are you Eligible?
- Must be currently enrolled in an HSA-qualified health plan
- May not be enrolled in any other non-HSA qualified health insurance plan*
- May not have, or be eligible to use, a general purpose flexible spending account (FSA)**
- Cannot be claimed as a dependent on another person’s tax return
- May not be enrolled in Medicare, Medicaid or Tricare
- Must not have used VA benefits for anything other than preventative services in the past three months unless receiving benefits for a service related injury or illness.
*Must not have any other first dollar health insurance coverage before the deductible is met. Preventative care services are not required to be subject to the deductible. Individuals may also carry separate coverage for accidents, disability, dental or vision care and long term care, not subject to the deductible.
**Limited purpose flexible spending accounts are allowed for Vision, Dental or Dependent Care.
HDHP Limits
If you choose an HDHP, the following are the minimum deductibles and maximum out of pocket amounts for High Deductible Health Plans for 2021 and 2022. These amounts are determined annually.
Minimum Deductible | Maximum Out-of-Pocket | ||
|---|---|---|---|
| 2023 | Individual | $1,500 | $7,500 |
| Family | $3,000 | $15,000 | |
| 2022 | Individual | $1,400 | $7,050 |
| Family | $2,800 | $14,100 |
2023 Minimum Deductible | |
|---|---|
| Individual | $1,500 |
| Family | $3,000 |
2023 Maximum Out-of-Pocket | |
|---|---|
| Individual | $7,500 |
| Family | $15,000 |
2022 Minimum Deductible | |
|---|---|
| Individual | $1,400 |
| Family | $2,800 |
2022 Maximum Out-of-Pocket | |
|---|---|
| Individual | $7,050 |
| Family | $14,100 |
HSA Contribution Maximums
Contributions are allowed up to the maximum limits determined annually. Here are the maximum annual HSA contribution limits for 2021 and 2022:
| 2023 | Individual (Self Only) Family (Self + at least one other person) Catch-Up (55 years of age or older) | $3,850 $7,750 $1,000 |
|---|---|---|
| 2022 | Individual (Self Only) Family (Self + at least one other person) Catch-Up (55 years of age or older) | $3,650 $7,300 $1,000 |
2023 | |
|---|---|
| Individual (Self Only) | $3,850 |
| Family (Self + at least one other person) | $7,750 |
| Catch Up (Age 55 or older) | $1,000 |
2022 | |
|---|---|
| Individual (Self Only) | $3,650 |
| Family (Self + at least one other person) | $7,300 |
| Catch Up (Age 55 or older) | $1,000 |
Distributions
- You, or an authorized signer, can make withdrawals (or distributions) for qualified expenses.
- Distributions from your HSA can be made by check, debit card, ATM, online bill payment or by in-person request.
- Distributions for qualified medical expenses are tax free.
- Distributions made for anything other than qualified medical expenses are subject to IRS tax plus a 20% penalty. The penalty is waived if the account owner is 65 or older, or due to death or disability.
- Qualified medical expenses for your spouse and your tax dependents may be paid from your HSA, even if those individuals are not covered under your high-deductible health plan (HDHP).
- You’re responsible for keeping receipts for all distributions from your HSA. The bank does not monitor how the funds are spent.
Treatment at Death
Upon death, your HSA account ownership may transfer to your spouse on a tax-free basis, and the account will still be subject to all HSA guidelines and requirements, simply with your spouse as the new owner. If the account is transferred to any other individual than a spouse as the beneficiary, the account will be treated as taxable income.
Further Information
For further information please refer to IRS Publication 502 for information on Eligible HSA Expenses and IRS Publication 969 for General HSA Information, or consult your tax advisor.