HSA Retirement Plan Ameritrust
HSA Retirement Plans

A Health Savings Account, HSA, was created for an individual or family who has a High Deductible Health Plan, HDHP. HSA retirement plans are tax advantaged accounts established to pay medical expenses in conjunction with a HDHP.


Eligibility to possess HSA retirement plans are:


  1. The individual that is covered by a qualified HDHP cannot be also covered under a non-qualified plan.
    • Minimum deductible for individual is $1,100 with the maximum out of pocket expense of $5,600.
    • The minimum deductible for a family is $2,200 with the maximum out of pocket expense of $11,200.
  2. No employer size or employee income restrictions apply.
  3. Sole proprietors, partners or shareholders in a Subchapter S corporation can contribute to a HSA with tax advantages.

The maximum amount one can contribute to HSA retirement plans is $2,900 if person has self coverage or $5,800 if he or she has family coverage. Once he or she reaches age 55 or above, Catch-Up Contributions can be made in the amount of $900. See the breakdown below.


 
Regular Contribution
Catch-Up Contribution for 55+
Maximum Contribution
2009 Single Contribution
$3,000
  
$3,000
2009 Single Contribution Age 55+
$3,000
$1,000
$4,000
2009 Family Contribution
$5,950
  
$5,950
2009 Family Contribution Age 55+
$5,950
$1,000
$6,950

Contributions are covered by the following rules:

  1. Employees, employers or others can make a contribution to the HSA.
  2. Unused balances are carried forward to future years.
  3. There is no limit on the total account accumulation.
  4. Contributions must be made in cash.
  5. The employee can deduct the contributions, other than those made by the employer, when preparing taxes.
  6. All contributions must be made by April 15th of the following year.

When dealing with distributions from a HSA, take the following in to consideration:

  1. The funds in HSA retirement plans belong to the individual.
  2. Funds used to pay qualified medical expenses are tax and penalty free. Excess contributions or distributions for non-medical expenses are subject to taxes and possible penalties.

Note that Publication 969 will outline these rules as well as others.