What Qualifies a HSA Compatible Account in 2017? - HSA Awareness

Health Savings Accounts (HSAs) have become increasingly popular in recent years as a way for individuals to save for medical expenses tax-free. To qualify for an HSA, you must have a High Deductible Health Plan (HDHP). But what exactly qualifies as an HSA compatible account in 2017?

An HSA compatible account in 2017 must meet the following criteria:

• The account holder must be covered by a High Deductible Health Plan (HDHP).
• The HDHP must have a minimum deductible and out-of-pocket maximum as set by the IRS.
• The account must be used solely for qualified medical expenses.
• Contributions to the account cannot exceed the annual limits set by the IRS.

It's important to stay informed about the requirements for HSA compatibility to ensure you are eligible to take advantage of the tax benefits.

Health Savings Accounts (HSAs) are an increasingly popular way for individuals to save money for medical expenses while enjoying tax benefits. To set up an HSA, being covered by a High Deductible Health Plan (HDHP) is essential, but what other factors contribute to qualifying for an HSA compatible account in 2017?

In 2017, several key criteria determine if your account is HSA-compatible:

• You must be enrolled in a High Deductible Health Plan (HDHP), which must adhere to specific minimum deductible and out-of-pocket maximum amounts set by the IRS.
• The funds in your HSA can only be used for qualified medical expenses, which can include a variety of services, from prescriptions to dental care.
• You must ensure your contributions do not surpass the annual limits imposed by the IRS, which can change each year, so keeping track of this is crucial.
• Additionally, you cannot be enrolled in Medicare or claimed as a tax-dependent on someone else's tax return in order to maintain HSA eligibility.

Staying up to date with HSA eligibility requirements and limits is key to maximizing your ability to benefit from this tax-advantaged savings tool.