Business Health Savings Account Accounts
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You can spend your HSA money tax-free, on out-of-pocket qualified medical expenses. These include co-payments for medical care, prescription drugs, medical bills not covered by insurance and more. The IRS determines what is considered a “qualified medical expense”. You can review the most updated list at IRS Publication 502.
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Visit the IRS website for the most current information on annual HSA contribution limits. Once you reach age 55, you can make an additional “catch-up” contribution each year until you enroll in Medicare. However, once enrolled, you are no longer eligible to make contributions to your HSA.
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To open an HSA you must have a high deductible health plan (HDHP). Check with your insurance carrier or employer to see if you qualify for an HDHP. In addition;
- No other health coverage except what is permitted by IRS Publication 969
- You cannot be enrolled in Medicare
- You cannot be claimed as a dependent on someone else’s tax return