If you will have out-of-pocket health care expenses in 2024-2025, it may benefit you to take advantage of the Health Savings Account (HSA) plan made available to you by Core Pipe if you enroll in the HDHP. This savings account can help you plan, budget and save on the cost of what you pay for health care costs.

Health Savings Account

If you enroll in in the HSA PPO plan, you may enroll in a Health Savings Account (HSA). An HSA is a separate, tax-advantaged medical savings account available only if you enroll in what’s considered a qualified high deductible health plan (HDHP). You can open an HSA through most major banks.

An HSA works similarly to a personal checking account; however, the money can only be used to pay for qualified medical expenses. Your HSA can pay for you and your eligible dependents’ medical expenses tax free. An HSA belongs solely to you, which means you keep the account even if you change jobs or retire. And any unused funds rollover from year to year. Other HSA advantages include:

• You can add tax free contributions. You take the deduction when filing your taxes. This helps you save on most state and federal taxes.
• You can use the money in your account to pay for eligible out-of-pocket medical, dental, and vision expenses.
• You can pay COBRA and some Medicare premiums with your HSA.
• You can use the money at any time, as long as it’s for a qualified medical expense.

Who can’t open an HSA?

• You cannot be enrolled in Medicare. (If you had an HSA prior to enrolling in Medicare, you may still use the funds. You just can’t contribute to the account anymore.)
• You cannot be claimed as a dependent on someone else’s taxes.
• You cannot have a regular FSA. (If you do have an FSA, but decide to open an HSA, your FSA will be re-labeled a limited use FSA. Limited use FSAs cannot be used to pay for medical and pharmacy expenses but can be used for qualified dental and vision.)

Contribution Limits

Each year, the IRS sets an annual limit on deposits to HSAs. The maximum you can deposit into your HSA depends on whether you enroll in individual or family coverage. The limits consider contributions from all sources – amounts you or anyone else deposits. Individuals over the age of 55 may contribute an additional $1,000 every year.

2024 HSA Contribution Limits

• Individual – $4,150
• Family – $8,300