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Thursday, April 16, 2015

A little catch-up about the HSA “catch-up”:

One of the perks of being a wise and mature person of 55 is the HSA catch-up.  Each year the IRS allows you to “catch up” on funding your HSA.

If you are the primary on the HSA and are 55+, you can make the extra funding.

  • If you have family coverage, you can fund the contribution limit of $6,550 (2015) and throw in $1,000 to bring the total to $7,650
  • It’s the same if you have single coverage.  $3,350 + $1,000 = $4,350 into your HSA.

But wait! What if my spouse is also 55+?

IRS regulations specify, only the primary on the HSA can make the catch-up contribution.  That’s because the tax reporting is done under that person’s social security number.

That being said, there’s always a way to squeeze a few extra dollars into your HSA.  Let’s look at an example:

Steve and Kate have a high deductible family plan.  Every year they contribute the maximum to their HSA.  The money is always there to cover those medical expenses that arise in a family of four.  Steve turned 55 in 2013.  Kate turns 55 in November, this year.

The perk to getting older for Steve is he can fund the $1,000 catch-up for 2015.

The perk to getting older for Kate is she can now open an HSA to fund her own $1,000 catch-up.

The family contribution amount of $6,650 can be divided between the two accounts in whatever fashion they choose.

Not a bad idea, considering their son Baird is starting lacrosse this year.  They can use the extra funds and tax savings.

Remember, we are your HSA specialists.  If you have a question contact us, we have the answer (If we don’t, we’ll find it)!

Blog Written By: Robin Vankleek

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Posted by HSA Admin at 4/16/2015 9:52:00 PM
Wednesday, May 22, 2013

I rarely pass by active duty military or a Veteran in uniform without stopping to say “thank you”.  I’ve even been known to anonymously pick up the tab for a group of active duty military who may be setting at a table close to me in a restaurant.  Our military is worthy of great respect.

Occasionally I come across something that puzzles me a bit in regards to Veterans, and my blog today is about one of those puzzling moments. 

Health Savings Accounts (HSAs) were signed into law in 2003. HSAs, when coupled with a high-deductible health insurance plan, allow consumers to put money aside in a tax-deferred account to pay for current and future medical expenses. 

Each year the government sets the limit for how much can be deposited into these accounts.  For 2013 you can deposit $3,250 (or $6,450 if you have dependents on your health insurance).  You can also deposit an additional $1,000 if you are 55+.

This is true for everyone but Veterans, and this is what puzzles me.

I admit I don’t understand the logic in the legislation, but the facts are clearly laid out.  If you use VA benefits for anything other than dental, vision, or preventive care, you are ineligible to deposit money into your HSA for three months.  If you use your benefits once, you reduce your allowed deposits into your HSA by one-fourth.  Use them twice and you could be cutting your allowed HSA deposits by half. Puzzling indeed!

There is some encouraging news, however.  A Veteran recently asked me if going to the VA for a service-related injury would disqualify him for depositing into his HSA.  It was a good question and well worth running by our contact at the Treasury Department. 

According to our contact, going to the VA for a service-related injury does not disqualify you from making deposits into your HSA.  Why?  Because the VA visit is for a specific “accident” related injury.  The HSA legislation does allow for accident coverage in addition to the qualified health insurance, and this treatment falls into that category.  That news certainly made my day!

It is also heartening to know there has been legislation introduced on more than one occasion that would disregard VA benefits entirely when considering HSA deposits.  No news on this yet.  It’s comforting to know we have national heroes who protect our freedoms and our form of government so these wheels of a free republic can turn.

If you’re a Veteran or active duty military – Thank You.  Next time your meal is paid for at a restaurant remember that it’s because someone appreciates your service.  It’s a small token of a grateful heart.

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Posted by HSA Admin at 5/22/2013 10:26:00 PM
Thursday, May 16, 2013

Concierge Medicine & Your HSAConcierge medicine is defined as “a relationship between a patient and a primary care physician in which the patient pays an annual fee or retainer”.  Basically, you pay a monthly and/or annual fee to have unprecedented access to a doctor for enhanced care and services as defined under their concierge agreement.

With concierge medicine you could receive 24/7 access to a doctor, same day appointments, longer appointment times and a greater degree of personalized attention.  The doctor may still bill your insurance (or you could be responsible for this), but you will not pay any additional funds for services covered at 100% under your agreement.

The lowest cost we found for this service via an internet search was $39/month, but average concierge fees can range anywhere from $1,500 to $15,000 per year.  It appears you can go with either the Volkswagen Bug or the Bentley!  It depends what you’re looking for in your concierge care and how much you’re willing to spend.

When it comes to covering the annual fee for this service, one of the first places people consider paying from is their HSA.  However, HSA funds can only be used for qualified expenses that have already happened.  They cannot be used in anticipation of future expenses.  For this reason, a concierge fee cannot be paid from an HSA.

But hold on…..there is still a silver lining!  You can reimburse yourself for HSA-qualified medical expenses received under your concierge membership during the year.  Confused?  No problem, it’s a little complicated.  Here’s a scenario to help make things a little more clear:

  • Let’s say you paid $2,500 for your concierge membership. 

  • During that year, you used your membership for $1,000 in medical services that were HSA-qualified and were not reimbursed by insurance. 

  • If your physician provides an invoice showing the actual cost of qualified medical expenses received under your concierge agreement, you can reimburse yourself for that $1,000 from your HSA.

  • You cannot, however, reimburse yourself from your HSA for concierge services that are in excess of your annual concierge fee. 
Qualified medical expenses that are not part of your concierge services can be reimbursed from the HSA if they have not been reimbursed by insurance.

Just a friendly reminder….documentation is everything!  If you reimburse yourself for concierge services received, be sure to keep detailed records in case of an IRS audit of your HSA.

What isn't complicated to understand, is that concierge medicine certainly seems to have a growing appeal.  2012 saw a 25% increase from the previous year in private physicians providing this service!

Concierge medicine is just one more option to consider when you sit down and budget your healthcare dollars.  Some will find it to be a perfect fit in their overall healthcare planning, while others may not see a benefit for their unique situation.  In consumer-driven healthcare, having options is healthy….and after all, isn’t “healthy” where we all want to be?

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Posted by HSA Admin at 5/16/2013 11:00:00 PM
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