• Who Is Eligible
• Contributions
• Withdrawals
• Eligible Expenses
• Potentially Eligible Expenses
• Ineligible Expenses
• Crossover
• Investment Options
• HSA Debit Card
• HSA Application

Who Is Eligible

You must be covered by a qualified high-deductible health plan and have no other coverage in order to start a Health Savings Account (HSA) or make contributions to your HSA.

High-Deductible Health Plans

For single coverage, the high-deductible health plan must have an annual deductible of at least $1100* for both 2007 and 2008, and annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $5500* in 2007 and $5600* in 2008.

For family coverage, the high-deductible health plan must have at least a $2200* deductible for both 2007 and 2008, and annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $11,000* in 2007 and $11,200* in 2008. The family coverage deductible is a cumulative deductible for all combined family members.

If you established an HSA but you are no longer covered by high-deductible health plan coverage, you cannot make any more contributions to your HSA. Any contributions you have already made, however, are yours to use at anytime.

* These amounts are indexed yearly to changes in the Consumer Price Index.

People with Additional Coverage

If you have coverage in addition to your high deductible health plan, you may not be eligible for an HSA. For example, if you are covered by a spouse's Flexible Spending Account, you are disqualified.

You remain eligible for an HSA if you have coverage (whether provided through insurance or otherwise) for accidents, disability, dental care, vision care, long-term care, insurance for a specified disease or illness, insurance that pays a fixed amount per day (or other period) of hospitalization or insurance under which substantially all of the coverage provided relates to liabilities from workers' compensation laws, torts, or ownership or use of property (such as automobile insurance). See IRS Notice 96-53 for more information. Other types of health care coverage that are not high-deductible health plans often disqualify you. This includes certain Flexible Spending Accounts and Health Reimbursement Accounts.

Medicare Recipients

According to IRS regulations, individuals enrolled in Medicare coverage are not eligible to start an HSA or make contributions to an existing HSA. If you are enrolled in Part A or B, you are not eligible for an HSA. Be aware that enrollment for Social Security benefits includes automatic enrollment in Part A of Medicare.

If you are eligible to enroll in Medicare but have not done so, you are eligible for an HSA. Please consult with your tax advisor if you have questions regarding your eligibility.

If you already have an HSA and you become eligible for Medicare or become disabled, a distribution that exceeds your qualified medical expenses will be included in your taxable income but will not be subject to the 10% additional tax.