Resources_&_SupportRecap of first three.

4.Those over 65 who qualify for Medicare may not open an HSA,but there are several incentives for those in their 50s or early 60s to at least consider an HDHP/HSA option. While, for instance,there are limits on the amount of tax-deductible contributions that can be made to an HSA in any year, those over 55 may also make specified “catch up” contributions. Once you turn 65 and are covered by Medicare you may no longer make contributions,but you can continue to draw from your account tax-free for out-of-pocket health expenses. In addition, you can use your account to pay Medicare pre-
miums, deductibles, copays, and coinsurance under any part of Medicare. If you have retiree health benefits through your former employer, you can also use your account to pay for your share of retiree medical insurance premiums. You can also use your account to pay long-term care premiums, though you may not use HSA funds to purchase a “Medigap” policy.
5.California has recently extended state tax deductions to parallel federal exemptions. This means that employee contributions to HSAs, and distributions made from these accounts to pay for medical-related expenses, are California income tax deductible. In addition,employer contributions will not be added to an employee’s California taxable income.
6.Finally,a word ofcaution for those who are shopping for an HDHP policy: while a policy may be attractive for its low premiums, be sure that it comes with a good preferred provider network.Ifnot,you can be hit with large bills for routine medical procedures, and because of the high deductibles, your out-of-pocket expenses can be very high indeed. In such instances, the advantages ofan HSA may evaporate.

1. You can’t open an HSA without subscribing to a high deductible healthcare plan (HDHP), but you can subscribe to an HDHP without opening an HSA.

2.Before deciding on an institution to act as trustee or custodian, research your investment options and the account fees.

3. As an employee, when comparing an HDHP with traditional copay plans, consider the amount your employer will contribute to your HSA.

4. Those over 65 who qualify for Medicare may not open an HSA, but there are several incentives for those in their 50s or early 60s to at least consider an HDHP/HSA option.

While,  for instance, there are limits on the amount of tax-deductible contributions that can be made to an HSA in any year, those over 55 may also make specified “catch up” contributions. Once you turn 65 and are covered by Medicare you may no longer make contributions, but you can continue to draw from your account tax-free for out-of-pocket health expenses.

In addition, you can use your account to pay Medicare premiums, deductibles, copays, and coinsurance under any part of Medicare. If you have retiree health benefits through your former employer, you can also use your account to pay for your share of retiree medical insurance premiums. You can also use your account to pay long-term care premiums, though you may not use HSA funds to purchase a “Medigap” policy.

5. California has recently extended state tax deductions to parallel federal exemptions.

This means that employee contributions to HSAs, and distributions made from these accounts to pay for medical-related expenses, are California income tax deductible. In addition,employer contributions will not be added to an employee’s California taxable income.

6. Finally, a word of caution for those who are shopping for an HDHP policy: while a policy may be attractive for its low premiums, be sure that it comes with a good preferred provider network.

If not, you can be hit with large bills for routine medical procedures, and because of the high deductibles, your out-of-pocket expenses can be very high indeed. In such instances, the advantages ofan HSA may evaporate.

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