Questions on H S A

[JG EA]

In TTB pg 13-1 the chart sas a listing for Maximum annual deductible and out-of-pocket limits - What does the out-of-pocket part mean? Is it just anyother way to talk about the deductible?

For the plan provider, do they have to adhere to any other rules besides having the right deductible, and having reporting requirements?

[Burke]

Out-of-pocket means anything the policyowner pays himself. This can be the annual deductible, but it can also mean co-pay percentages, and amts paid over the maximum benefit of the policy.

[BP.]

For the plan provider, do they have to adhere to any other rules besides having the right deductible, and having reporting requirements?

Check out Pub 969. Here's an excerpt:

"When you set up an HSA, you will need to work with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider."

[JG EA]

Thank you.

So, do you think if there is several years accummulation then no more than that maximum amount can be spent out of the HSA in that year?

For the trustee then they do not have to be tied in with the Health Insurance and so the HI can be picked by the taxpayer and doesn't have to market as qualified? If the HI qualifies in year one can the min/max be off in year two and the taxpayer can still put money into the HSA? Is that part of what the "New Law Repeal of annual plan deductible limitation" (pg 13-29) means?

For instance Self-only's HI in 2008 had a deductible of $1,100 and the TP opened an HSA. If in 2009 their insurance deductible stayed the same, can the TP put more money into the HSA even if the qualified minimum deductible is more - say it is $1,200 or more?

I remember asking this question before but can't find it now. Im just trying to clear up a few points. Clients have been getting conflicting statements from Insurance companyies and others.

[veritas]

A single individual

can contribute $2900 in 2008 ($3800 if age 55) if he/she has a policy with a annual deductible of at least $1100. The maximum out of pocket expenses not covered by the policy can not exceed $5600 (not including the insurance premiums).

The health savings account does not have to be with the insurance provider. It can be wih a bank, insurance company or other institution that has approval bythe IRS, similar to an IRA account.