The federal open enrollment has come to a close, but that limitation doesn’t affect the HSA. HSAs can be opened by any qualified individual, family, or employer (for employees) anytime. HSAs are not beholden to normal restrictions of healthcare.
Do I Qualify for an HSA?
You must have an HSA-eligible health plan, like a high-deductible health plan (HDHP). Under 2020 and 2021 federal regulations, HDHPs that qualify must have deductibles of $1,400 or more for an individual and $2,800 for a family. Additionally, the annual out-of-pocket maximum on plans in 2020 can’t be greater than $6,900 for individuals or $13,800 for families. In 2021, those maximums increase to $7,000 for self-only coverage and $14,000 for family coverage.
Can I Rollover or Switch My HSA Provider Outside of Open Enrollment?
Of course! Open or transfer an HSA anytime to help save tax-free money for qualified out-of-pocket medical expenses – open enrollment not required. You can transfer your HSA in a few different ways (rollover, trustee-to-trustee transfer or even an IRA to HSA transfer). No matter which one you choose, the Lively support team, can take care of the necessary steps, so you don’t have to.
Why Open an HSA Today?
The delay of opening an HSA is only costing you money, so don’t delay, open your HSA today… for FREE! The advantage of opening (and establishing) an HSA is that once you complete the process (it takes 5 minutes), you now have the flexibility to pay for qualified out-of-pocket medical expenses 100% tax-free. You don’t need to save money today to take advantage of this HSA features. In fact, you can pay for qualified out-of-pocket medical expenses and then add the money to your HSA after the fact. It’s a tremendous perk!
In addition to the tax savings benefits, one additional feature is the sooner you open an HSA, the sooner you can invest your HSA funds. HSA Investments provide a clear path to save money for long-term healthcare cost or just save 100% tax-free money for retirement.
Even though open enrollment is over, you can still optimize your healthcare benefits. Use an HSA to balance your health insurance and save for any expected and unexpected healthcare costs. Your HSA is the health nest egg you need (and can use) for years to come.
If you need more help with open enrollment decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.