Health Savings Account
Whether you are looking to cover doctor expenses or medication costs, you will be prepared when you open a Health Savings Account (HSA). This interest-earning account can help individuals with high-deductible health plans save for future, qualified medical expenses.
Benefits of an HSA
- Tax-free growth
- Visa Health Savings Debit Card for qualifying medical expenses
- Earns Interest
- No Monthly Service Fee
- No Minimum Balance Requirement
How it works
- You must have coverage under a High Deductible Health Plan
- You may not be covered by any health plan that is not an HDHP (exceptions exist for insurance that covers accidents, disability, dental care, vision care, long-term care and other "permitted insurance.")
- You must not be enrolled in Medicare
- You may not be claimed as a dependent on someone else's tax return.
- You must comply with the guidelines for annual contribution limits.
- You must understand and manage your contributions and distributions. The financial institution holding your account is not responsible for advising you regarding compliance with these requirements.
- You should keep all receipts for expenses made from the Health Savings Checking account in case they are needed during an audit.
- You do not lose the funds in your Health Savings Checking account if they are not used within the year.
- You may make contributions to your HSA account for the previous tax year until April 15th or the tax deadline.
- HSA funds can pay for any qualified medical expense. This includes most medical care and services, and dental and vision care. Refer to IRS Pub 502 (available at www.irs.gov) for a partial list. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
- Your employer or a tax adviser can help you determine if you are eligible to open an HSA and provide you with the contribution limits that apply to your situation.
- Your HSA funds may not be used to make loan payments or as collateral for a loan
- Overdraft protection - not offered with this account. Non-sufficient funds fees will be assessed if the account is overdrawn.
- No minimum opening deposit required.
HSA Contribution and HDHP LimitsThe statutory annual contribution limit for HSAs depends on whether you have a self-only or a family high-deductible health plan (HDHP).
|HSA- Compatible High Deductible Health Plan (HDHP) Requirements|
|Tax Year||HDHP Coverage||Minimum Deductible||Maximum Out-of-Pocket Expense|
Radiant is not responsible for determining the amount that a member is eligible to contribute. We may not, however, accept regular contributions that exceed the maximum family contribution amount.
|Health Savings Account (HSA) Contribution Limits|
|Tax Year||Self-Only Coverage||Family Coverage||Catch-Up (age 55 or older)|