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Qualifying for an HSA

Optum Bank HSAs are FDIC insured bank accounts that you can use to pay for qualified health expenses for yourself and your covered dependents tax free. To be an eligible individual and qualify for an HSA, you must meet the following requirements, as defined by the IRS:

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You cannot be claimed as a dependent on someone else's tax return.

 

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You must be covered under a high deductible health plan (HDHP) on the first day of the month.

 

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You are not enrolled in Medicare or other health coverage except what is permitted by the IRS.

 

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Other restrictions and exceptions may also apply.

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  • You are not enrolled in Medicare, TRICARE or TRICARE for Life.
  • You haven’t received Veterans Affairs (VA) benefits within the past three months, except for preventive care. If you have a disability rating from the VA, this exclusion doesn’t apply.
  • You do not have a health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
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    We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.

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    What’s a high-deductible health plan?

    The IRS defines a qualifying high-deductible health plan as having:

    2019:

    • A minimum annual deductible of $1,350 individual/$2,700 family
    • An out-of-pocket maximum of $6,750 individual/$13,500 family

    2020:

    • A minimum annual deductible of $1,400 individual/$2,800 family
    • An out-of-pocket maximum of $6,900 individual/$13,800 family

    2021:

    • A minimum annual deductible of $1,400 individual /$2,800 family
    • An out-of-pocket maximum of $7,000 individual/$14,000 family
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    Coverage of adult children

    Health care reform legislation passed in 2010 allows adult children up to age 26 to be covered by parents’ health plans, including high-deductible plans.

    The tax laws regarding HSAs have not changed, however an adult child must still be considered a tax dependent in order for his or her medical expenses to qualify for payment or reimbursement from a parent’s HSA.

    If you are under age 26 and covered by a parent’s HSA-eligible, high-deductible health plan, you may be able to open and fund an HSA yourself and can contribute up to the IRS family maximum. The criteria above still apply. Consult a knowledgeable benefits consultant or tax advisor.

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