1. How do I start an HSA?FAQs

To open an HSA you first need to be enrolled in a Qualified High Deductible Health Plan. A Qualified High Deductible Health Plan or QHDHP is a health plan that carries a high deductible. Each year what is considered a QHDHP can change. For 2019, the minimum deductible requirement is $1,350 for individual and $2,700 for family.  For 2020 the deductible requirement is $1,400/$2,800.

2. How do I get money in my HSA?

There are several ways to deposit money in your HSA. If your employer has a Section 125 Cafeteria Plan that allows pre-tax HSA contribution then you can contribute funds directly from your paycheck to your HSA...these funds are taken out before State, Federal and FICA taxes are applied. Contact your employer to see if this applies to you. You can also deposit money into your account via ACH direct deposit from your checking or savings account. Additionally, you can always mail a check to Benefit Solutions and we will apply it to your HSA.

3. How do I withdraw money from my account?

To withdraw money from your HSA you can login to your account and transfer money from your HSA directly to your savings or checking account. You can also send us a Request for Distribution to move money from your HSA to your other bank account or we can send you a check in the mail. Of course, you will be issued a debit card when you open the account so you can automatically pay the provider at the time of service instead of waiting to transfer the money.

4. How long should I keep my receipts?
7 years from the date you claimed it as a medical disbursement on your tax return.  

5. What do I do with my receipts?
You should store your receipts in a safe place (file cabinet, safe, lock box, etc) and organize them so they are easily recovered in case of an audit.  We recommend storing it with your tax return.

6. Do I EVER pay taxes on the money in my HSA?
Pre-tax payroll deductions that are deposited into your HSA do not have State, Federal or FICA taxes applied to them. If you deposit your funds in any other manner you will be able to take a deduction on your tax return for what you have contributed that year to your HSA. All distributions are pre-tax as long as they are for eligible medical expenses as defined by the IRS code.

7. What happens if I use my HSA money for a non-qualified expense?
At a minimum, you will pay taxes on the funds you used.  If you are under age 65, you will also be charged a 20% penalty.

8. What are qualified expenses?
Some common examples are: prescriptions, glasses, dentistry, chiropractic care, orthodontics, office visits, lasik eye surgery, etc. You can read more about what is a covered expense by logging into your account at 

9. What if I switch jobs...what happens to my HSA?
Your HSA is portable and you can contribute to it as long as you are still enrolled in a QHDHP. If your new employer does not offer a QHDHP, you will not be able to contribute more to your account; however, you will still be able to use the money. Your account will remain open as long as you pay the monthly administrative fee determined by Benefit Solutions.

10. Does the FSA "Use-it-or-Lose-it" rule apply to HSAs?
No. Money not used in a given year is rolled over into the next year. It will continue to grow.

11. What if I lose my health insurance?
If you are no longer enrolled in a QHDHP you can still use the HSA funds for qualified medical expenses. However, you can only contribute to the HSA if you are enrolled in a QHDHP.

12. Can my HSA money be invested?
Yes.  Once your balance reaches $1,000 you have several investment options. Click 
here to learn more.

13. If I die...what happens to my HSA money?
You will name a beneficiary to receive your HSA funds at the time of account setup.

14. How much can I contribute to my HSA?
How much you can contribute to your HSA depends on what tier of high deductible health insurance you are enrolled.  For 2019 the limits are $3,500 for individual coverage and $7,000 for family coverage (employee + 1). For 2020 the limits are $3,550 and $7,100. You have until April 15th of the following year to make contributions that will affect the previous year's limit. For example, if you open an HSA on March 15th of 2019 you have until April 15th of 2020 to the 2019 tax year.  The family limit includes both spouses. Combined contributions can not exceed the family coverage limit.  

15. Whose expenses can my HSA pay for?  You, your spouse and your dependent children (as long as they are dependents on your taxes).

16. If my spouse also has an HSA...what can we contribute?
Your combined contributions must not exceed the family limit set for that particular year.

17. My child is covered by my QHDHP...can they have an HSA too?
If your child is age 18 or older, your child can open their own Health Savings Account.  If not, only the owner of the health insurance coverage or their spouse can open a HSA.

18. My spouse has an FSA...can I have an HSA?
You can only enroll in an HSA if your spouse has a Medical FSA with an "exclude spouse" clause or a "limited-purpose" FSA that only covers vision or dental expenses. Not all FSA providers offer this option. Talk to your spouse about whether they are enrolled in FSA benefits at work and if so, find out more about what type of FSA account they are enrolled in BEFORE you contribute to a HSA. Neither you or your spouse can contribute to a Health Savings account if either of you is enrolled in a General Purpose Medical FSA.

19. I have an FSA and I am thinking about switching to an HSA...is that possible?
Yes, it is possible but it usually takes a little planning ahead. Since general purpose Medical FSAs are seen as "other health coverage", you cannot be covered by a general purpose medical FSA and contribute to a HSA. Also, if your employer has a 2 1/2 month grace period or a roll-over provision on your FSA plan this could prove to be a problem with contributing to a HSA. Coordinate with your spouse to ensure conflicts do not exist.