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Health Savings Accounts HSAs 2021

A health savings account (HSA) is a tax-exempt or custodial account set up with a qualified HSA trustee to pay or reimburse certain medical expenses incurred by you, your spouse, and your qualified dependents. The medical expenses must not be reimbursable by insurance or other sources, and distributions from HSA funds will not give rise to a medical expense deduction on your tax return.

Qualifying for an HSA

To be eligible, you must meet the following requirements.

  •  Must be covered under a high deductible health plan (HDHP).
  •  Cannot have any other health coverage. Exception: Coverage for specific things, such as disability, dental care, vision care, telehealth visits, and long-term care, can be purchased in addition to the HDHP without disqualifying the HSA.
  •  Cannot be enrolled in Medicare.
  •  Cannot be eligible to be claimed as a dependent on someone elseโ€™s tax return.

Full Article: Health Savings Accounts HSAs 2021