You are not claimed as a dependent on another person’s annual tax return. You are not enrolled in Medicare or any other health plan disallowed by the IRS. You are not a recipient of supplemental insurance coverage. You are covered under a qualified HDHP on the first day of the month. If your HDHP meets the below requirements, you can pair it with an HSA. HDHPs usually have higher out-of-pocket costs in exchange for lower monthly premiums. Also, your plan must meet specific requirements, including annual deductible limits and out-of-pocket maximum costs. This tax-advantaged account is only available for individuals with a high-deductible health plan (HDHP). What are the requirements to open an HSA? You should consult with your certified public accountant or tax advisor to help you navigate your situation. The IRS provides a complete list of qualified expenses in Publication 502. They can help you determine if your premiums and other expenses would be approved. If you’re not sure if an expense counts as an HSA-eligible item, call your HSA administrator. Health insurance premiums paid while receiving unemployment benefits Long-term care insurance (deduction limits based on age) However, the IRS allows exceptions for premiums that fall under the following categories:ĬOBRA premiums and other healthcare continuation coverage Typically, your health insurance premiums don’t fit into the category of HSA-eligible expenses. HSAs can pay for copayments, coinsurance, deductibles, and other qualified medical expenses. Do health insurance premiums qualify under HSA? Here, we will review the types of health insurance premiums that qualify under HSA, so you can save more money. Under certain circumstances, you may be eligible to use your HSA to pay for health insurance premiums. HSA-eligible expenses can range from deductibles to dental expenses. You can “roll over” all HSA dollars that haven’t been spent yet. Unlike a flexible spending account (FSA), funds in your HSA won’t expire at the end of the year. This type of account allows you to set aside pretax dollars, invest your funds, and withdraw money for eligible medical expenses, 100% tax-free. Health savings accounts (HSAs) have become a popular way to plan for future healthcare expenses.
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