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 Medical 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
- Will come with a Visa debit card
- May be used to pay any allowable Medical Expense
- Unused funds will rollover to the next year
2. HSA – Self Directed: This special feature allows you to direct all, or any portion of your HSA account to be invested in alternative assets; such as 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
- Investment activity
- Your HSA has the potential to be triple tax free!
How Much May I Contribute to an HSA? (2019)
- For an Individual (Individual coverage) $3,500 per year
- For a Family Plan (The insurance policy covers the family) $7,000 per year
- If you are age 55 and older, you can contribute an extra $1,000 per year
- You can receive tax-free distributions from your HSA to pay for qualified medical expenses you incur after you establish the HSA. See IRS publication 502 for 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 that are not on Medicare
- Persons or families who have a High Deductible Health Plan (HDHP)
- What are the limits for 2019 to be qualified as a HDHP? Minimum Deductibles: For an Individual the policy must have an annual deductible of no less than $1,350. For a Family the policy must have an annual deductible of no less than $2,700.
- Maximum Out of Pocket Cost: (Includes items such as deductibles, co-payments, and coinsurance, but not premiums) For an Individual $6,750. For a Family $13,500 .
How to Get Started:
When you are ready to start using the investment option of your HSA
- Notify the IRA Club
- A separate “Self Directed account” will be created for your HSA.
- Please note that the separate account will keep the accounting clear and easy for you to track
- Note: This account will be owned by your HSA account.
- Any transaction that can be made in a Self Directed IRA may be made by your Self Directed HSA.
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! 888-795-7950