Health Savings Accounts are designed specifically to help cover the qualified medical expenses of individuals with a high-deductible health care plan. Assets in an HSA can be used to cover medical, dental, and vision care. Unlike a flexible spending account, HSA owners are not required to use the assets within a certain time frame or risk losing the funds. This allows HSA funds to grow over time. HSA owners are permitted to move assets from one financial institution to another, even if contributions were made by an employer. This gives the HSA owner flexibility in how the account is managed and invested.
How to Open an HSA Account at Thrive?
- To be eligible to open an HSA, a member must be enrolled in a high-deductible insurance plan. Thrive may ask for proof of eligibility on a case-by-case basis.
- A prime share account must first be opened with the HSA owner as the primary member before the HSA can be opened.
- Like an IRA, there is no such thing as a “Joint” HSA. However, in the case of a family health insurance plan, we can allow an authorized signer on the HSA. The authorized signer can receive a debit card to be used for qualified medical expenses.
Contributions for an HSA
- The contribution limit for HSA’s depends on if the health insurance plan covers an individual or the entire family. For individual plans, the 2020 contribution limit is $3,550; for family plans the limit is $7,100. HSA owners age 55 and older may contribute an additional $1,000.
- Any contributions made to an HSA, whether from the owner, family, or an employer, count toward the contribution limit.
- HSA owners with a Traditional or Roth IRA may make a one-time Qualified HSA Funding Distribution up to the HSA contribution limit. SEP and SIMPLE IRA’s are not eligible for these distributions.
Dividends posted monthly effective 07/01/2020 and are subject to change without notice.
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** APY is Annual Percentage Yield
*** Dividends Posted Monthly