Getting Started

HSAs require a bank or insurance company to act as trustee or custodian. An individual cannot be a trustee. Individuals under age 65 are eligible to contribute if they have a qualified health plan.

For 2009, contributions are allowed up to 100% of the health plan deductible with maximum annual contributions of:

• the lesser of the deductible or $3,000 for single policies.
• the lesser of the deductible or $5,950 for family policies.

HSA distributions are tax free if they are used to pay for qualified medical expenses;

• Anything under Section 213(d) of the IRC are qualified expenses