Not everyone can open and contribute to an HSA. To be HSA eligible, you:
– Must be covered under an HSA-qualified “high deductible health plan” (HDHP)
– Must have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
– Are not enrolled in Medicare.
– Cannot be claimed as a dependent on someone else’s tax return.
Opening a new HSA
You must complete the application information on this web form to set up an HSA! You can set up an HSA as soon as you are covered by a qualified high deductible health plan (HDHP). Be sure to use your legal name (not a nickname) and provide all information requested to avoid delays in account setup. Your enrollment info will be sent to BASIC to establish the HSA. BASIC will then send you a “welcome” email or letter with activation and online account instructions.
Contributing to your HSA
Contributions to your HSA can be made by you, your employer, or both.
– Payroll deduction: You can contribute through pretax payroll direct deposit by completing the information on this web form or on an election form (provided by your employer). You will not pay income or social security tax on any payroll contribution to your HSA.
You can change your deductions for HSA contributions at any time. Sign up here to start payroll deductions!
– Direct contributions: Transfer funds from a personal checking or savings account electronically through your BASIC online account, or make a deposit to your account as you would any other savings account. Post-tax contributions are an above-the-line deduction on your tax return, and reduce Adjusted Gross Income (AGI) for tax
Accessing your HSA funds
1. You will receive a debit card from BASIC that is connected to your HSA. Your HSA debit card is the easiest way to use your HSA. Simply swipe the card at the point of service or purchase.
2. Pay yourself back by logging onto your account and transferring funds to a personal checking account.
How much can I contribute to an HSA?
You can contribute up to the statutory maximum set by IRS, which is adjusted annually for inflation (prorated monthly for the number of months you were HSA-eligible)
$3,550 – If you have Single HDHP coverage
$7,100 – If you have Family HDHP coverage
Individuals age 55 and older can also make an additional $1,000 “catch-up” contribution.
See brochure for details.
Use the money in your account to pay for any qualified medical expense permitted under federal tax law. This includes most medical services, dental and vision care. Not only can your HSA be used for your medical expenses, it can also be used for your spouse’s or your dependent children’s medical expenses, even if they are not covered by your HDHP.