HealthSaver Account Participant Toolkit, HSA, High Deductible Health Plan HDHP | TRI-AD
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Health Savings Account (HSA) is a tax-exempt account that works in conjunction with a High Deductible Health Plan(HDHP) to allow you to pay for out-of-pocket health care expenses with tax-free dollars.
This includes deductibles, coinsurances, copayments, prescription drugs and more. Visit this page for more details, Click Here
High Deductible Health Plan (HDHP) is a health plan that by its very nature has a high deductible that you must cover before the Plan starts to pay benefits.
It also must satisfy specific IRS requirements, discussed later. Most HDHPs exempt preventive care from the deductible. If yours does, your annual checkups may be covered without having to meet your deductible.

HealthSaver Overview

Save Up To 35% on HSA Expenses

How Much Should You Contribute?

HealthSaver Eligible Expenses

HSA Limits 2016
Single: $3,350
Family: $6,750
Age 55+: An additional $1,000
HSA Limits 2017
Single: $3,400
Family: $6,750
Age 55+: An additional $1,000

FAQs

What is a TRI-AD HealthSaver Account (HSA)?
HSA allows you to deposit pretax money from your paychecks in a bank account to pay for health care expenses. You can pay for qualified medical expenses tax-free, or grow the account and use it for qualified medical expenses in the future.
What is a High Deductible Health Plan (HDHP)?
For 2016, A qualified HDHP is a health insurance plan with a minimum deductible of $1,300 (single coverage), or $2,600 (family coverage). Maximum annual in-network out-of-pocket expenses are $6,550 (single coverage) or $13,100 (family coverage)
Who is eligible for a HealthSaver Account?
To participate, you must be enrolled in an HSA-qualified High Deductible Health Plan (HDHP), and cannot be covered by any other plan that is not an HDHP, with certain exceptions. Additionally, you cannot be enrolled in Medicare, be a dependent on someone else's tax return, or have received VA medical benefits in the past three months.
Can my spouse and I both contribute to my HealthSaver Account?
You and your spouse cannot have a joint account. However, if you are both eligible, you can both have HSAs. You'll need to divide the maximum HSA contribution limit between the two of you. (For 2016, this amount is $6,750).
How much can I contribute to my HealthSaver Account?
Yearly maximum contribution levels are set by the federal government. For 2016, you can contribute up to $3,350 if you have single HSA-qualified health plan (HDHP) coverage, or $6,750 if you have family HSA-qualified health plan (HDHP) coverage. If you are age 55 or older, you can contribute an extra $1,000.

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Do I lose contributions I don't use?
Your HealthSaver Account balance plus investment earnings carry over from year to year — tax-free. State taxes may still apply. You do not lose your money if you do not spend it within the year.
How do I transfer an existing HSA to TRI-AD?
If you are transferring another HSA to a TRI-AD HealthSaver account, you must register on TRI-AD's Web site and open your account online. Then after a one business day waiting period, log back in and access the Transfer of Assets form in the "Resource Center." For example, if you open your account on Saturday, wait until Tuesday (Monday is the one business day waiting period) to obtain your Transfer of Assets form. Complete and return this form to TRI-AD and your existing HSA will be transferred to your TRI-AD HealthSaver Account.
Does a HealthSaver Account pay for the same things that regular insurance pays for?
HealthSaver funds can pay for any "qualified medical expense," even if the expense is not covered by your HDHP. For example, your insurance may not cover the cost of an extra pair of glasses or adult orthodontia, but you can use your HealthSaver Account for these expenses. If the money from the account is used for qualified medical expenses, then the money spent is tax-free.
What are qualified medical expenses?
Typically, qualified medical expenses are the same expenses under section 213(d) of the Internal Revenue Code that qualify for a Cafeteria Section 125 Flex Plan and include:
  • All medical, dental, and vision expenses, as well as chiropractic visits and acupuncture
  • Eldercare and retirement facilities
A determination of whether an expense is for "medical care" is based on all the relevant facts and circumstances. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
For a complete list of qualified expenses, please click here.
Who decides whether the money I’m spending from my HealthSaver Account is for a "qualified medical expense?"
It's your responsibility to determine whether expenses qualify for tax-free reimbursement. Although it is not required that you send documentation to use funds in your HealthSaver Account, it is advised that you keep documentation in the event that the IRS requests the information.
Can I use the money in my HealthSaver Account to pay for medical care for a family member?
Yes, expenses generally can be for yourself, your spouse, or your dependent children. Your spouse and dependents do not need to be covered by the same health plan.
Can I pay my health insurance premiums with an HSA?
Generally, you cannot use HSA funds to pay insurance premiums. Exceptions include COBRA premiums, long-term care premiums, or premium payments that allow you to retain health coverage while you’re receiving unemployment benefits.
Can I use funds from an HSA for non-qualified medical expenses?
Yes, but you'll be required to pay income tax and a penalty on the amount you use for non-qualified medical expenses. (The penalty doesn't apply to distributions made after your death or disability, or after you've reached age 65.)
Can I use my HealthSaver Account to pay for medical expenses incurred before I set up my account?
No, you cannot reimburse qualified medical expenses incurred before your account is established.
I have a HealthSaver Account but no longer have HDHP coverage. Can I still use the money that is already in the HealthSaver Account for medical expenses tax-free?
Once funds are deposited into the HealthSaver Account, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.
What happens to my HealthSaver Account if I am no longer enrolled in an HSA qualified health plan?
You will no longer be eligible to contribute to the HealthSaver Account. However, you will still have access to the account, and can use the funds as you choose. Withdrawals for qualified medical expenses will still be tax-free.
Additionally, similar to how IRAs and 401(k)s work, you can roll over your HealthSaver Account funds into another HSA at any time.
What happens to the money in a HealthSaver Account if I die?
If the named beneficiary is your spouse, your spouse can continue to access the account tax-free for qualified medical expenses. (Your spouse will need to pay income taxes on any non-qualified expenses.)
If your beneficiary is not your spouse, the account will no longer be an HSA, and the beneficiary or estate must pay taxes on the fair market value of the account in the year of your death, or in the last taxable year of the estate. However, no penalties apply.
The taxable amount is reduced by any qualified medical expenses incurred by you that the beneficiary pays for within one year of the date of death.
How are HSA funds invested?
The TRI-AD HealthSaver Account offers both an FDIC-insured interest bearing deposit account plus the option to direct funds into pre-selected investments once you have reached the minimum deposit account balance of $1,000.
When I withdraw money from an HSA, how do you convert the assets?
Distributions are paid from your FDIC-insured deposit account, rather than your investments. You must sell your investments and transfer funds into your FDIC-insured deposit account if you want to have any funds paid.
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