Health Savings Accounts
past decade, rising healthcare costs have had an adverse effect on the benefits
businesses and organizations can afford to offer their employees, shifting the
burden of funding increased healthcare costs to their employees. Adding
the First Midwest Bank Health Savings Account (HSA) to your High Deductible
Health Plan (HDHP) benefits package will enable your business to improve the
benefit choices you offer your employees, and give them greater control over
their own healthcare spending.
HSA Eligibility Requirements
To be eligible for an HSA, prospective account holders must
meet certain requirements, including:
- Be an individual or
employee who is covered by a HDHP (defined as a plan with a deductible of $1,300
or higher for an individual or $2,600 or higher for a family);
- Not be
enrolled in Medicare;
- Not be a dependent on someone else's tax return;
- Have no other first-dollar medical coverage. Other types of
insurance, such as specific injury insurance or accident, disability, dental
care, vision care or long-term care insurance, are permitted.
addition, annual out-of-pocket expenses under the plan (including deductibles,
co-pays, and co-insurance) cannot exceed $6,450 for self-only coverage or
$12,900 for family coverage.
If you meet the eligibility requirements,
whether self-employed or even unemployed, anyone can contribute to an HSA on
your behalf, including you, your employer or family members. Contribution limits
are determined based on whether an individual or family is covered. For 2016,
maximum HSA deposit contributions are:
- $3,350 for an individual; and
- $6,750 for a family.
For individuals 55 or older, there is
a "catch-up" provision that allows you to contribute an additional $1,000 for
2015 and subsequent years. The "catch-up" contributions are prorated based on
the number of months you are eligible. And, any and all of your contributions
must be made by April 15th of the following calendar year.
can be made at any time during a taxable year, up to and including the date for
filing your federal income tax return. You can also take a one-time, tax-free
distribution from your IRA and transfer it to the HSA.
For more information about Health Savings Accounts, contact us at
800-322-3623 and we'll connect you with a First Midwest On-the-Job Banking