My Health Savings Account Eligiblity How To Set Up An HSA

Individuals under the age of 65 are eligible to contribute to a Health Savings Account if they have a qualifying High Deductible Health Insurance plan and have no other Health Insurance coverage, are not eligible for Medicare coverage and are not claimed as a dependent on someone else's return. Individuals, employees or employers can contribute to an HSA.

For Individual policies, a qualified health plan must have a minimum deductible of $1,000 with a $5,000 cap on the out-of-pocket expenses (indexed annually).

For family policies, a qualified health plan must have a minimum deductible of $2,000 with a $10,000 cap on out-of-pocket expenses (indexed annually).

1. First and most importantly, determine if you have a qualifying High Deductible Health Insurance plan in effect (HDHI). Consult a qualified insurance professional or your employer or health plan sponsor regarding insurance questions. Contact your accountant or other qualified tax consultant regarding HSA legislation.

2. If you do not have a qualifying HDHI plan, you can make changes to your current plan to increase your Individual and/or Family deductible in order to qualify. An increase in your deductibles will result in a premium savings over your current health plan.

3. After determining your eligibility:
    A. Review and attest to the: Account Adoption & Trust Agreement
    B. Complete the: Health Savings Account Application
    C. Complete the: Beneficiary Designation

4. Enclose your check payable to: HSA Bank
    Include with this initial payment:
    A. One Time Setup Fee $25.00 *
    B. Initial Deposit to open your HSA Account (minimum $50)

5. Keep copies of all forms and completed applications for your records

6. Mail the application and other forms with your check to:

MyHealthSavingsAcct
201 North 5th Street
Murray, Ky 42017

Click on More Information to learn How Your Health Savings Account is Processed and when it goes into effect.

More Information

1. TAX SAVINGS

Federally Qualified HSA contributions can be deducted from your gross income on your federal tax return, even if you do not itemize deductions.

Many states also allow the deduction from state income taxes.

2. TAX DEFERRED INTEREST & EARNINGS

Funds left to accumulate in your HSA can grow with tax deferred interest and earnings.

3. REDUCED INSURANCE PREMIUMS

Your insurance premiums are usually lowered by 20%-40% when you change from a low deductible to a high-deductible plan.

You can use these savings to fund your HSA.

4. PORTABILITY

Even if you change jobs, your HSA funds go with you.

You own your account.

5. LONG-TERM SAVINGS

You can choose to let the funds in your account grow tax-deferred.

After age 65, you may make withdrawals from your HSA for any reason without a penalty.