What Are Health Savings Accounts?


A Health Savings Account (HSA) is a tax-exempt trust or custodial account which you use to pay qualified medical expenses for you and your family.

Am I eligible for an HSA?

If you meet the following criteria in one month, you are eligible:

  • You are covered under a high-deductible health plan (HDHP) on the first day of that month;
  • You are not covered under another type of health plan that is not an HDHP (certain exceptions apply);
  • You are not enrolled in Medicare (generally, are under 65 yrs. old); and
  • You may not be claimed as a dependent on another individual's tax return.

What is an HDHP?

An HDHP is a plan with an annual deductible of at least $1,200 for individual coverage or $2,400 for family coverage. These amounts are for the year 2010 and are subject to cost-of-living adjustments (COLAs).

Are there other requirements for the HDHP?

Yes. The HDHP must limit out-of-pocket expenses. For 2011, the maximum out of pocket expenses, which include money applied to your deductible and your coinsurance for covered charges, must be no more than $5,950 for individual coverage and no more than $11,900 for family coverage. These amounts are subject to COLAs.

Who can contribute to my HSA?

Once you have met the requirements, anyone may contribute to your HSA, regardless of your employment status.

How much can I contribute to my HSA?

For 2011, you can contribute up to $3,050 for individual and $6,150 for family. In addition, a "catch-up" contribution is available for eligible individuals who have attained age 55 by the end of their taxable year but have not attained age 65. For 2011, the amount is $1,000.

icon HSA-FAQs_2011.pdf (740 KB)
icon Updated_Examples_of_Allowable_Expenditures.pdf (547 KB)  

2012 Guidelines

IRS guidelines in 2012 allow max contributions up to $3,100 for Individuals and $6,250 for a Family plan. If you are over 55, you can contribute an additional $1,000 "catch-up" to your HSA.

If you have a spouse who is over 55, you must open a second account in order to take advantage of the catch-up contribution.

icon First_American_Bank_Employer_Guide_2012.pdf (187 KB)
icon First_American_Bank_HSA_Employee_Guide_2012.pdf (297 KB)
icon Qualified_Expenses_-_2012.pdf (174 KB)
icon Why_Choose_HSA_-_2012.pdf (174 KB)
icon Using_Your_HSA_-_2012.pdf (176 KB)
icon HSA-FAQs_-_2012.pdf (84 KB)

Please note that this information is provided as a courtesy by First American Bank and is subject to change at any time. Please consult with your tax/legal advisor for clarification and regulations. First American Bank is a third party and the rules and regulations may differ from your bank of choice. Please refer to your specific account details if enrolled in a Health Savings Account through your bank.

It is your responsibility to be sure that you are paying qualified health care expenses from your Health Savings Account. The best way for you to be sure if your expenses are qualified is to refer to Section 213 of the IRS Code, under Publication 502: Medical and Dental Expenses. To order IRS Publication 502, go to the IRS website at www.irs.gov

You may also wish to consult your tax advisor regarding these matters. H Group Benefits, Inc. is not responsible for determining if your distributions qualify, nor do we provide tax or legal advice.