By definition, a health savings account (HSA) is a tax-exempt trust or custodial account that you’ll set up with a qualified HSA trustee to either pay or reimburse certain medical expenses. Certain eligibility requirements must be met before qualifying, but individuals do not need permission or authorization from the IRS before establishing an account.
HSAs necessitate a trustee such as a bank, insurance company, or an organization already approved by the IRS (like American IRA) to be a trustee of individual retirement arrangements or Archer MSAs. Gathering as much HSA information as possible is important before opting into such a plan.
HSAs have many benefits, starting with the option to claim a tax deduction for contributions that you or someone other than your employer makes to your HSA. They can also be self-directed like an IRA. Contributions that are made by your employer can be excluded from your gross income, and contributions remain in your account every year until you use them.
Distributions may also be tax-free if you use them to pay qualified medical expenses, and if you change employers or leave the work force, an HSA stays with you. As you can see, there are a number of positive aspects to a health savings account, but what kind of HSA information do you need to determine whether you qualify?
Qualification requirements include the fact that you must be covered under a high deductible health plan (HDHP) on the first day of the month and you can’t have any other health coverage (except the variety covered here). In addition to these aspects, you cannot be enrolled in Medicare, nor can you be claimed as a dependent on someone else’s tax return.
American IRA is an industry-leading provider of self-directed IRA services, and we also offer self-directed HSAs for anyone interested in non-traditional assets. Click here for more HSA information or call 1-866-7500-IRA(472) to learn more!
If you have any questions about opening a new account, contact us at 1-866-7500-IRA(472) or [email protected]. If you’d like to transfer your existing portfolio, contact us at 1-866-7500-IRA(472) or [email protected].