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44 Cards in this Set

  • Front
  • Back

To qualify for an HSA you........

1. Must be covered under an HDHP.


2. Have no other health coverage (except what is permitted.


3. Are not enrolled in Medicare.


4. Cannot be claimed as a dependent on


someone else's tax return.

HDHP stands for?

High Deductible Health Plan.



Is an HSA portable?

Yes. Portable means it stays with you if you change employers or leave the work force.

Who can contribute to an HSA?

Anyone.

Who receives the tax benefit for contributions made to an HSA?

The accountholder.

An HSA can only have one accountholder?

True. The IRS recognizes only one SSN for an HSA account.

What is the best way for someone to determine if their health insurance plan qualifies as an HDHP?

Call their health insurer.

Are contribution limits the same for all HSA's?

No. Single HDHP's have a different limit than Family HDHP's.

At what age does my contribution limit increase?

Age 55. The contribution limit increases by $1,000 during the year (and every year after) the account holder turns 55.

What is the last day contributions may be made to an HSA for a given year?

The tax filing deadline.

Contributions to an HSA for the year, that are greater than the contribution limits, are considered what type of contribution?

Excess.

How are excess contributions removed from an account?

Excess Removal form.

At HSA Bank, we refer to money that is deposited into an HSA account as a..............

Contribution.

At HSA Bank, we refer to money that is withdrawn from an HSA account as a..............

Distribution.

True or False. HSA funds can be used for any type of expense an account holder may have?

False.

In general, funds in an HSA account can be used by who?

The accountholder.




The accountholder's spouse.




Any person claimed as a tax dependent by the


accountholder.

True or False. Funds that remain in an HSA account at the end of the year will carry over to the next year?

True.

What determines the distribution limit for an account?

The balance in the account.

Can a person use funds in their HSA for eligible medical/dental/prescription expenses incurred prior to the effective date of the HSA?

No. The expense has to be incurred on or after the account effective date.

What penalty is there if I use my HSA funds for anything other than an eligible medical expense?

You must pay both income tax, plus a 20% penalty, on any distribution amount that is not used to pay a qualified medical expense.

Can an account holder who is age 65 or older, but has not accepted Medicare benefits, still make contributions to their HSA?

Yes, assuming they still meet the qualifications for having an HSA.

Do I have to close out my HSA account when I start receiving Medicare benefits?

No. I can still use the funds tax free for eligible medical expenses.

Who determines what is, or is not, an eligible medical expense?

The IRS.

Where can I find a list of eligible and ineligible medical expenses?

IRS Publication 502.

Can HSA accounts have beneficiaries?

Yes. Having a beneficiary on an account makes the process of closing the account much easier in the event the account holder passes away.

Can I move an HSA I have at a different custodian to HSA Bank?

Yes. By doing a rollover or transfer using HSA Bank's Direct Rollover/Transfer form.

Does a rollover or transfer from another HSA custodian to my HSA at HSA Bank count as a contribution?

No. It has already been counted as a contribution by the custodian where the funds were initially deposited.

Can my contribution to my HSA account come directly from my paycheck?

Yes. It is called a pre tax contribution.

If I do not make my contribution from my paycheck, can I still make a contribution on my own and receive the tax benefit?

Yes. It is known as a post tax contribution.

Are there tax documents issued for an HSA account?

Yes. 1099-SA for distributions and 5498-SA for contributions.

Can I make a contribution to my HSA from my IRA?

Yes, but only up to the HSA contribution limit, and only one time "in a lifetime."

Can I transfer funds from my 401K to my HSA?

No.

Does an account holder have to provide receipts to HSA Bank to document his purchases?

No, but we recommend that receipts be saved for tax purposes.

Can I use my HSA funds for over the counter medicines, vitamins, or my health club membership?

No, unless you have a prescription for this type of purchase.

Do I have to have an employer listed on my account?

No.

Can I have more than one HSA?

Yes, but in general only one contribution limit is allowed between multiple accounts.

My spouse has a family HDHP in her name, but I am also covered by the HDHP. Can I have my own HSA?

Yes, but in general only one contribution limit would be allowed for both your HSA and that of your spouse's.

Do I have to pay taxes on the interest and/or earnings from my HSA?

No, as long as you use them for eligible medical expenses.

What is another term for eligible medical expenses (EME's)?

Qualified Medical Expenses (QME's).

What IRS Publication discuss' HSA's in detail?

IRS Publication 969

If my employer contributes to my HSA account, do I have to count that contribution as income?

No.

Do I have to itemize my taxes to obtain the tax benefit for the contributions to my HSA?

No, but you do have to file tax form 8889.

Can I pay myself back for eligible medical expenses that I paid out of pocket?

Yes. But only if the expenses were incurred on or after the effective date of the HSA.

Can I add my spouse to my HSA at HSA Bank?

Yes. They become an Authorized Signer and have all rights and access to the use of the account as the account holder does. However, an Authorized Signer may not add another Authorized Signer.