About the program
A Health Savings Account (HSA) is an account that works in conjunction with a High Deductible Health Plan (HDHP). The account allows you to put money aside and reimburse yourself for medical expenses on a tax advantaged basis. Unspent funds accumulate tax-free and roll over from year to year.
For 2021, the HRA IRS limits for an annual contribution are $3,550 for an individual and $7,100 for a family.
An employee can qualify for a HSA:
- if the employee is covered by a compatible high deductible health plan (Aetna 70);
- if the employee is NOT covered by any other health insurance;
- an employee is NOT enrolled in Medicare, including Part A;
- an employee is NOT listed as a dependent on someone else's tax return;
- your spouse is NOT part of a joint HSA.
Note: If you have an HSA, you cannot also have a flexible spending account.
You can find additional information on Health Savings Accounts by checking the IRS Publication 969.