Health Savings Account or HSA is a tax advantaged medical savings account
that is owned by the individual. They are designed to be used in conjunction
with a High Deductible Health Insurance Plan. The money contributed
to the account is not subject to the federal tax at the time of deposit,
so it’s pre-tax dollars for employees or tax deductible if you
are self-employed. The funds in a Health Savings Account can be used
to pay all eligible medical related expenses that are not covered by
your Health Insurance Plan.
Each year at the beginning of May the IRS releases the HSA Contribution
Limits for the coming year. These rules go into affect January 1, 2013.
The new contribution limits for Individual HSA Plans will be $3250
which is a $150 increase from 2012 levels. For Family Plans the new
HSA contribution limits will be $6450 or a $200 increase over 2013
levels. The HSA Catch Up Provisions for plan owners age 55 or over
remains unchanged at $1000. This means that if the owner has an individual
plan they can contribute a maximum of $4250 or $7450 if they are the
owner of a family plan.
This is a wonderful way for Marion City Employees and Self-Employed
members to save on their medical expenses.
Please stop by our Main Office or Call (765) 662-3969 to see if you
are eligible to open a HSA or to ask any questions you may have regarding