Health Savings Accounts and catch-up contributions
Bernard Health works with employer all over the country to help them manage healthcare expenses. The employees of those companies and non-profits have all kinds of questions about health insurance, and it's our job to answer those questions! I was asked a few questions from one of our clients about how the Health Savings Account catch-up contributions work. You may already know some of this, but here are a few things you may find helpful:
- If you are 55 or older and not participating in Medicare, you can contribute an extra $1000 annually to your Health Savings Account
- If you are covered as a dependent on your spouse's HSA-eligible medical plan, then you should open your own HSA.
- Only the HSA account-holder can contribute the Catch-up Contribution in to an HSA.
- This means that if your spouse is 54 or younger and you are 55 or older, and the HSA is in their name, the Catch-up Contribution cannot be made.
- If both spouses covered by an HSA-eligible medical plan are age 55 or older and not participating in Medicare, then you must have separate HSA accounts to maximize the Catch-up Contributions.
- Each spouse (as an accountholder) can contribute an extra $1000.
- If someone is covered by Medicare, they cannot make any contributions into an HSA account.
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