Health Savings Accounts
Who can contribute to an HSA?
There are no restrictions on who may make a contribution to an HSA. Therefore, the account holder, their employer, or any other person can make an HSA contribution on the account holder's behalf.
What can the participant use the HSA money for?
Money in the account can be used to pay for "qualified medical expenses" permitted under federal tax law. This includes most medical care and services, dental and vision care, and also includes over-the-counter drugs. Money in the account can be used to pay qualified medical expenses for the account holder, their spouse or dependent children. In general, the money cannot pay for insurance premiums.
View additional questions:
- What is a Health Savings Account (HSA)?
- How do employees qualify to open an HSA?
- When can contributions be made to an HSA?
- Can employer's still offer their regular Health Care Flexible Spending Account (HCFSA) Plan to HSA participants?
- Do employers have to amend the Cafeteria Plan to allow for pre-tax contributions to the HSA?
- How much can be contributed to an HSA?
- Can money be rolled over from an employee's Health Flexible Spending Account (HCFSA) or Healthcare Reimbursement Account (HRA) into an HSA?
- Can a participant transfer money from his or her Individual Retirement Account (IRA) into an HSA?
- Who can contribute to an HSA?
- What can the participant use the HSA money for?
- How are withdrawals from an HSA treated if they are not used for qualified medical expenses?
- Are contributions to and distributions from an HSA reported to the IRS?