Health Savings Account
Whether you are looking to cover doctor expenses or medication costs, you will be prepared when you open a Health Savings Account (HSA). This interest-earning account can help individuals with high-deductible health plans save for future, qualified medical expenses.
Benefits of an HSA
- Tax-free growth
- Visa Health Savings Debit Card for qualifying medical expenses
- Earns Interest
- No Monthly Service Fee
- No Minimum Balance Requirement
How it works
- You must have coverage under a High Deductible Health Plan
- You may not be covered by any health plan that is not an HDHP (exceptions exist for insurance that covers accidents, disability, dental care, vision care, long-term care and other "permitted insurance.")
- You must not be enrolled in Medicare
- You may not be claimed as a dependent on someone else's tax return.
- You must comply with the guidelines for annual contribution limits.
- You must understand and manage your contributions and distributions. The financial institution holding your account is not responsible for advising you regarding compliance with these requirements.
- You should keep all receipts for expenses made from the Health Savings Checking account in case they are needed during an audit.
- You do not lose the funds in your Health Savings Checking account if they are not used within the year.
- You may make contributions to your HSA account for the previous tax year until April 15th or the tax deadline.
- HSA funds can pay for any qualified medical expense. This includes most medical care and services, and dental and vision care. Refer to IRS Pub 502 (available at www.irs.gov) for a partial list. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
- Your employer or a tax adviser can help you determine if you are eligible to open an HSA and provide you with the contribution limits that apply to your situation.
- Your HSA funds may not be used to make loan payments or as collateral for a loan
- Overdraft protection - not offered with this account. Non-sufficient funds fees will be assessed if the account is overdrawn.
- No minimum opening deposit required.
HSA Contribution and HDHP Limits
The statutory annual contribution limit for HSAs depends on whether you have a self-only or a family high-deductible health plan (HDHP).HSA-compatible HDHPs are defined by certain minimum deductible amounts and maximum out-of-pocket expense amounts. If a health plan does not meet these limits, the covered individual will not be eligible for HSA contributions.
| HSA- Compatible High Deductible Health Plan (HDHP) Requirements | |||
|---|---|---|---|
| Tax Year | HDHP Coverage | Minimum Deductible | Maximum Out-of-Pocket Expense |
| 2023 | Self-Only | $1,500 | $7,500 |
| Family | $3,000 | $15,000 | |
| 2024 | Self-Only | $1,600 | $8,050 |
| Family | $3,200 | $16,100 | |
Radiant is not responsible for determining the amount that a member is eligible to contribute. We may not, however, accept regular contributions that exceed the maximum family contribution amount.
| Health Savings Account (HSA) Contribution Limits | |||
|---|---|---|---|
| Tax Year | Self-Only Coverage | Family Coverage | Catch-Up (age 55 or older) |
| 2023 | $3,850 | $7,750 | $1,000 |
| 2024 | $4,150 | $8,300 | $1,000 |
For more information about IRA contributions, refer to IRS Publication 590-A, Contributions to Individual Retirement Arrangements, and to IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans,for more information on HSA contributions.
