Self Directed HSA

HSA Medical Accounts and Self Directed HSA

 

 

Starting an IRA Club “Health Savings Account” provides you the opportunity to both save tax dollars and make smart investments income tax free. There are two account options: a Medical HSA and a Self Directed HSA. Both are triple tax-free! Contact the IRA Club today to see which plan is best for you.

The Low Down

Types of Accounts

1. HSA – Medical Account: Every new account starts as a full-featured Health Savings Account.

• • Contributions to the account are Income Tax-Deductible
  • Account comes with a Visa debit card
  • Used to pay for Qualified Medical Expenses
  • Unused funds will roll over to the next year

HSA Eligible Expenses

2. HSA – Self Directed: This special feature allows you to direct any portion of your HSA account (or the entirety) to be invested in alternative assets like real estate, lending, mobile homes, and much more.

• • If you decide to use part or all of your HSA funds to invest, a special Self Directed HSA will be established. This will allow you and the IRA Club to separate and clearly identify Medical Expense Payment activity from Investment activity.

HSA Eligible Investments

Tax Benefits

• Your HSA has the potential to be triple tax-free!

Contributions

How Much May I Contribute to an HSA? (2023)

• For an Individual (Individual coverage), $3,850 per year
• For a Family Plan (The insurance policy covers the family) $7,750 per year
• If you are age 55 and older, you can contribute an extra $1,000 per year

Distributions

• You can receive tax-free distributions from your HSA to pay for qualified medical expenses you incur after establishing the HSA. See IRS publication 502 for an explanation of QMEs.
• If you take distributions for something other than qualified medical expenses, the amount you withdraw will be subject to income tax and may be subject to an additional 20% penalty.
• There is no penalty on distributions made after the date you are disabled or reach age 65.

Who is Eligible?

• Individuals not enrolled in Medicare
• Persons or families covered under a High Deductible Health Plan (HDHP)
  • HDHPs have higher annual deductibles than typical health plans
  • What are the limits for 2022 to be qualified as an HDHP?
    • Minimum Deductibles:
      • Individual: policy must have an annual deductible of no less than $1,400
      • Family: policy must have an annual deductible of no less than $2,800
    • Maximum Out of Pocket Cost: Includes deductibles, co-payments, and coinsurance, but NOT premiums.
      • Individual: $7,050
      • Family: $14,100
• Individuals who are not claimed as a dependent on someone else’s 2022 tax return.

If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse’s coverage doesn’t cover you.

How to Get Started:

Submit the following to [email protected]

• Completed application(s)
  • Medical HSA application
  • Self Directed HSA application
• Copy of your ID, DL, or passport
• Copy of your insurance card

NOTE: INVESTMENTS MADE IN THE SELF DIRECTED HSA MAY NOT BE LIQUID. THUS, INVESTED FUNDS MAY NOT BE AVAILABLE TO USE IN CASE OF A MEDICAL EMERGENCY.

Contact us today to learn more! 312-795-0988

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