HSA Rules & Important Disclosures
Health Savings Accounts (HSAs) are governed by federal tax rules established by the Internal Revenue Service (IRS). An HSA must be paired with a qualified High Deductible Health Plan (HDHP) in order for contributions to be permitted. Contributions to an HSA are limited annually by IRS rules, and these limits apply to all contributions to your HSA from all sources (including employer and individual deposits). Withdrawals used to pay or reimburse qualified medical expenses may be tax-free; withdrawals for other purposes may be subject to income tax and a penalty. To be eligible to contribute to an HSA, you generally:
- Must be covered by an HDHP on the first day of the month
- May not be covered by other disqualifying health coverage
- Cannot be enrolled in Medicare
- Cannot be claimed as a dependent on someone else’s tax return.
This information is provided for general educational purposes only and does not constitute tax or legal advice. Members are encouraged to consult with a tax advisor or review IRS Publication for full details on eligibility, contribution limits, qualified expenses, and tax implications. https://www.irs.gov/irm/part21/irm_21-006-005r#id66
