#029 – How To Structure Your Health Savings Account gives you a list of ten (10) easy steps to ensure that you are 100% covered by your High Deductible Health Plan and Health Savings Account from the Get-Go!
- Enroll in a qualified High Deductible Health Plan (aka HDHP)
- Open a Health Saving Account (aka HSA) – click here to see the HSA I use
- Identify your Enrollment and Effective Date for your plan year
- Review ALL of your plan options
- Check your existing savings
- Calculate Out Of Pocket Maximum
- Determine Your HSA Contribution Limit (Single, Family, 55+)
- Make certain your Out Of Pocket Maximum IS NOT higher than your HSA balance
- Use payroll deduction for your remaining HSA contributions
- Plan & Prepare to have enough additional ordinary non-HSA savings to make the necessary lump-sum contribution on January 1st of the following year to top-off your HSA to match your annual deductible
An Embedded Deductible is an important plan feature for non-single policyholders (i.e. married couples, single-parent heads of household and families. An embedded deductible limits the deductible for anyone covered person to the individual deductible. If the deductible for a plan is $5,000 for an individual and $10,000 for a married couple, head of household or family, anyone covered person need only meet the individual deductible of $5,000 rather than the $10,000. Should another family member have a claim in the same year, the next person in the family must also meet another $5,000 deductible.
I receive nominal compensation from Lively HSA at absolutely no cost to you. Learn more about Lively here
Over 55 years old? You can (and should) add an additional $1,000 every year to your HSA which is allowed by the IRS in order to allow you to catch-up as you have fewer years to contribute before reaching Medicare-eligible age.
Over 55 years old AND married?? See above AND open a SEPARATE HSA account for your spouse. Your spouse is eligible to add and additional $1,000 every year to your spouse's HSA. The IRS does not allow you to add $2,000 to one account. Consider opening your spouse's account where I have mine, with Lively HSA.
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