HSA 101 Flashcards
Who/what created the HSA?
Created by the IRS (IRS Code 223)
Who is eligible for an HSA?
1) An individual covered by an HDHP
2) An individual who is not enrolled in Medicare or TRICARE
3) An individual who cannot be claimed on another person’s tax return
4) An individual whose primary residence is in the U.S. and has a valid SSN
5) An individual who has not used their VA Benefits in the last 90 days for a non-service related disability
What makes you ineligible for an HSA?
1) Medicare
2) General Purpose FSA or HRA
3) FSA Grace Period or Rollover
4) VA Benefits
5) TRICARE
6) Indian Health Services
What are some HSA-compatible health plans?
1) Workers compensation
2) Accidents
3) Specific disease/illness
4) Disability
5) Dental care
6) Vision care
7) Long-term care
8) Prescription drug plans
9) Fixed amount per day or other period of hospitalization
When are HSAs effective?
The first of every month
What’s the “Triple Tax Advantage” ?
1) Contributions are pre-taxed
2) Earnings grow tax free
3) Distributions for QMEs are tax free
Where can QMEs be found?
IRS Publication 502
What are the 3 ways you can contribute to an HSA?
1) Employer
2) Yourself (Employee)
3) Transfer/Rollover
When does the 5498-SA go out and what does it report?
May; Reports contributions
When does the 1099-SA go out and what does it report?
January; Reports distributions
What are the 3 things that could happen to an HSA when the AH passes away?
1) If beneficiary is spouse, account may be transferred to spouse name and remain an HSA
2) If beneficiary is not spouse, balance is paid to the beneficiary as a taxable transaction
3) If there isn’t a beneficiary, balance is paid the employee’s estate
How can someone designate a beneficiary?
1) Online on the Member Website
2) Beneficiary Form
Define catch-up contribution
Individuals and/or their spouses, over the age of 55 and not enrolled in Medicare can make an additional $1,000 catch-up contribution annually.
What is the deadline to remove excess contributions?
The tax filing deadline (include extensions)
What does IRS Form 8889 report?
It is completed to report the HSA on your taxes