Surgent's Critical Issues With Health Savings Accounts

Overview

Health savings accounts (HSAs) are an effective way for employers to provide employees with financial help so they can pay their out-of-pocket medical expenses in a tax-efficient manner. Individuals who are not participating in an employer-funded HSA may set up their own HSA to achieve the same ends. Clients often ask accounting and finance professionals about the mechanics of HSAs and whether they are beneficial. This program is a two-hour discussion that delves into the details of HSAs for those who need to know more than just the basics.

In this course, we will explain the rules for HSA eligibility, including reasons why some people cannot be eligible for an HSA. Then, we will discuss how individuals and families can maximize their HSA contributions each year and avoid unexpected tax liabilities. Finally, we will describe what HSA funds can be used for, and how both contributions and withdrawals are reported on the individual’s personal income tax return.

Highlights

• HSA eligibility, including interactions between HSAs, FSAs, and HRAs
• Disqualifying coverage: Medicare, veterans’ benefits, Indian Health Service Benefits, and employer-based coverage (FSAs, HRAs)
• HSA deposits: rules employers must follow when making contributions and how to handle excess contributions
• HSA transfers and rollovers
• HSA withdrawals, including how to handle mistaken distributions
• HSA establishment date: how determined it is and the 18-month rule
• HSA tax reporting: responsibilities of employers, HSA trustees/custodians, and HSA owners
• HSA prohibited transactions
• Special situations: death, divorce, bankruptcy
• Potential disadvantages of HSAs
• Strategies for taking maximum advantage of HSAs

Prerequisites

None

Designed For

Any accounting and finance professional with health care needs or who may be advising clients about their health care needs

Objectives

• Advise clients on the critical issues with HSAs
• Evaluate the effectiveness of these trending plans, continuously increasing in popularity, for your own needs

Preparation

None