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
    • Will come with a Visa debit card
    • May be used to pay any allowable Medical Expense
    • Unused funds will rollover to the next year

HSA Eligible Expenses

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

HSA Eligible Investments

Tax Benefits

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

Contributions

How Much May I Contribute to an HSA? (2021)

  • For an Individual (Individual coverage) $3,600 per year
  • For a Family Plan (The insurance policy covers the family) $7,200 per year
  • If you are age 55 and older, you can contribute an extra $1,000 per year

How Much May I Contribute to an HSA? (2020)

  • For an Individual (Individual coverage) $3,550 per year
  • For a Family Plan (The insurance policy covers the family) $7,100 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 you establish 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 deductible than typical health plans 
    • What are the limits for 2021 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 items such as deductibles, co-payments, and coinsurance, but NOT premiums.
        • Individual: $7,000
        • Family: $14,000
  • Individuals who are not claimed as dependent’s on someone else’s 2021 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 newaccounts@iraclub.org

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