Is there a deadline for contributions to an HSA for a taxable year?
Contributions for the taxable year can be made any time prior to the time prescribed by law (without extensions) for filing the eligible individual’s federal income tax return for that year, but not before the beginning of that year. For calendar year taxpayers, the deadline for contributions to an HSA is generally April 15 following […]
What happens when HSA contributions exceed the maximum amount that may be deducted or excluded from gross income in a taxable year?
Contributions by individuals to an HSA, or if made on behalf of an individual to an HSA, are not deductible to the extent they exceed the limits. Contributions by an employer to an HSA for an employee are included in the gross income of the employee to the extent that they exceed the limits or […]
Must employers who make contributions to an employee’s HSA determine whether HSA distributions are used exclusively for qualified medical expenses?
No. The same rule that applies to trustees or custodians applies to employers. Individuals who establish HSAs make that determination and should maintain records of their medical expenses sufficient to show that the distributions have been made exclusively for qualified medical expenses and are therefore excludable from gross income.
What are the income tax consequences after the HSA account beneficiary’s death?
Upon death, any balance remaining in the account beneficiary’s HSA becomes the property of the individual named in the HSA as the beneficiary of the account. If the account beneficiary’s surviving spouse is the named beneficiary of the HSA, the HSA becomes the HSA of the surviving spouse. The surviving spouse is subject to income […]
May I roll money from my IRA or Roth IRA to my HSA?
Yes. The rules allow for a one-time tax-free trustee to trustee transfer of IRA funds into an HSA, provided: The amount contributed to the HSA is subject to the maximum annual contribution limits. Amounts transferred from the IRA plus any additional employer or employee contributions will be applied against the maximum annual contribution limit. The […]
May I roll money from my SEP or SIMPLE IRA to my HSA?
No, SEP and SIMPLE IRAs are excluded from rollover.
How does the health FSA grace period affect my eligibility to own/contribute to a health savings account (HSA)?
In general, if you, or your spouse want to be eligible to own/contribute to an HSA, you must have a zero balance in a general purpose health FSA by the end of your FSA plan year in order to be HSA-eligible on the first day of your new plan year.
How could the health FSA $500 carryover affect eligibility to contribute to a health savings account (HSA)?
In general, if you, or your spouse want to be eligible to contribute to an HSA, you must: 1) have a zero balance in your general purpose health FSA at plan year end, 2) elect to convert your general purpose health FSA to a limited purpose health FSA for the next plan year (for dental […]
Who is eligible for an HSA?
To be eligible for an HSA, an individual must be covered by a HSA-qualified High Deductible Health Plan (HDHP) and must not be covered by other health insurance that is not an HDHP. Certain types of insurance are not considered “health insurance” and will not jeopardize your eligibility to contribute to an HSA.
Can I contribute to an HSA even if I have other insurance that pays medical bills?
You are only allowed to have dental, vision, disability and long-term care insurance at the same time as an HDHP. You may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered. Wellness programs offered by your employer are also permitted if […]