HSA Card IRS Limits
Limited access to health expenses after certain amount
Affordable health care cost options other than state
HSA Contribution Limits
For 2018: $3,450.00 maximum contribution for individual coverage; and $6,900 for family coverage. $1,000 for additional catch-up contributions for people age 55 or older.
You cannot use HSA Accounts to pay for health insurance
Basically, you can use HSA funds for medical costs but
not insurance premiums except for:
- If you are over 65
- If you are unemployed
- If you are on COBRA
HSA penalties for non-qualified expenses:
Effective Jan. 1, 2011, the penalty for using HSA funds for
non-qualified medical expenses for those under the age
of 65 (unless totally and permanently disabled) increased
from 10% to 20% of the funds used for non-qualified
expenses. Funds spent for non-qualified purposes also are
subject to income tax.
HSA’s and coverage of adult children up to age 26:
While the Patient Protection and Affordable Care Act
(PPACA) allows parents to add their adult children (up to
age 26) to their health plans, the IRS has not changed it’s
definition of a dependent for health savings accounts.
This means that an employee whose 24-year old child is
covered on their HSA-qualified high-deductible health
plan is not eligible to use HSA funds to pay for medical
bills for that 24-year old.