Health Savings Account

A Health Savings Account (HSA) from First United Bank is a tax-exempt account established exclusively for paying qualified medical expenses for you and your family. HSAs are a sensible option for individuals and families covered by high deductible health insurance plans (HDHP).

Contributions may be tax deductible and withdrawals used for qualified medical expenses are tax-free. Consult your tax advisor or the IRS for additional details.

2 – First issued card is free. $5 replacement fee for lost or replaced cards.

2024 HSA Contribution Limits, Deductibles, and Out-of-Pocket Expenses¹

2024 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):

• HSA holders can choose to save up to $4,150 for an individual and $8,300 for a family (HSA holders 55 and older get to save an extra $1,000 which means $5,150 for an individual and $9,300 for a family) – and these contributions are 100% tax deductible from gross income.
• Minimum annual deductibles are $1,600 for self-only coverage or $3,200 for family coverage.
• Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $8,050 for self-only coverage and $16,100 for family coverage.

2 – First issued card is free. $5 replacement fee for lost or replaced cards.

2023 HSA Contribution Limits, Deductibles, and Out-of-Pocket Expenses¹

2023 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):

• HSA holders can choose to save up to $3,850 for an individual and $7,750 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,850 for an individual and $7,750 for a family) – and these contributions are 100% tax deductible from gross income.
• Minimum annual deductibles are $1,500 for self-only coverage or $3,000 for family coverage.
• Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $7,500 for self-only coverage and $15,000 for family coverage.

For more detailed information HSA plan and taxes, visit the U.S. Department of Treasury website at www.ustreas.gov or talk with your tax advisor.

1 – Contribution limits may change annually according to the Internal Revenue Service.

Eligibility

You Could be Eligible to Establish an HSA, If You Meet All of the Following Requirements:

• You must be covered under a high deductible health plan (HDHP) that falls within the HSA contribution limits.
• You must be covered under a high deductible health plan on the first day of the month.
• You are not entitled to Medicare benefits.
• You are unable to be claimed as a dependent on another person’s tax return.

Qualified Medical Expenses

Qualified Medical Expenses are expenses incurred after a HSA has been established, are not covered by insurance, and are paid by the HSA owner, his or her spouse, or dependents.

Types of Qualified Medical Expenses Include:

• Doctor visits, vision expenses, prescriptions and dental expenses.
• Diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function on the body.
• Transportation for the essential medical care listed above.
• Qualifies long-term care services.
• Premiums for qualifies long-term care insurance, COBRA health care continuation coverage, health care coverage while an individual is receiving unemployment compensation.
• For individuals over age 65, premiums for Medicare Part A or B, Medicare HMO, and the employee share of premiums for employer-sponsored health insurance, including premiums for employer-sponsored retiree health insurance.
• Certain amounts paid for lodging while away from home that is essential to medical care.
• For 2010 and earlier, nonprescription drugs as described in Revenue Ruling 2003-102.