Health Savings Accounts (HSA)

You can potentially reduce your health insurance costs by establishing an HSA. A high deductible health insurance plan is required. The maximum annual tax-deductible HSA contribution changes annually. To find this year’s contribution limits, please see the list provided on our website under Resources titled “Annual Updated Tax Numbers” for this and other limits, thresholds, and rates that change annually. An individual (and their covered spouse) who has attained age 55 before the close of the tax year may make an additional $1,000 "catch-up" contribution. This plan allows you to pay into a trust account an amount up to the deductible. This amount is deductible on your tax return on page 1 of Form 1040, in arriving at Adjusted Gross Income, which may be helpful for planning for other tax benefits. Any deductibles, co-pays, and out of pocket medical expenses can then be paid from the HSA account. To assist in funding your HSA, a one-time transfer from your IRA, FSA or HRA is allowed. Keep in mind if you enroll in an HSA you cannot be enrolled in a Flexible Spending Account (FSA) at the same time. You should contact your health insurance provider if you are interested.