Don’t forget that First Horizon Msaver maintains a toll-free line just for brokers and agents. Use this line to get answers to your HSA questions, or to enroll a group.
877-949-6727
House Committees Pass Health Reform Legislation. businessinsurance.com, July 17, 2009
Under a late addition to the bill, employees could not tap their flexible spending accounts, health reimbursement arrangements or health savings accounts to pay for reimbursement of over-the-counter drugs. (Read More) Healthcare Marathon May Hit Wall This Week. thehill.com, July 20, 2009
If President Obama’s analogy - that reforming healthcare is a long race - holds true, this week might just be Heartbreak Hill. (Read More) How to Cut Your Doctor Bill. forbes.com, July 15, 2009 Hospital billing offices are starting to act like used car lots. Get yourself a deal. (Read More)
Who Supports What? A Healthcare Stakeholder Scorecard. healthleadersmedia.com, July 20, 2009 Though groups have begun taking sides, more details are expected for each of the plans and the Senate Finance Committee plans to release its bipartisan bill in the next two weeks. That should change the healthcare reform landscape even more. (Read More)
The Internal Revenue Service (IRS) has announced the 2010 inflation adjusted amounts for health savings accounts (HSAs) in Revenue Procedure 2009-29.
Annual contribution limitation. For calendar year 2010, the annual limitation on deductions under a high deductible health plan is $3,050 for an individual with self-only coverage, and $6,150 for an individual with family coverage.
High deductible health plan. For calendar year 2010, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 for self-only coverage or $2,400 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,950 for self-only coverage or $11,900 for family coverage
This revenue procedure is effective for calendar year 2010.
What Health Savings Account (HSA) owners need to know about filing their taxes.
As tax time approaches, many HSA account holders may wonder what special steps they must take in order to file their taxes and report their HSA contributions. Here is some information that will help you understand what to expect, and some tips to help you with your tax return. First Horizon Msaver does not offer tax or legal advice; be sure to consult with a professional if you have questions pertaining to your individual situation.
What tax forms will I get in the mail for my HSA?First Horizon Bank will send you Form 1099-SA by January 31. This form will show total distributions (withdrawals) made from your HSA during the previous year.First Horizon Bank will also send you Form 5498-SA by May 31. This form will show total contributions (deposits) made to your HSA for the previous year.Why won’t I receive Form 5498-SA until May 31?You have until April 15, 2009, to make contributions to your HSA for the previous year.IRS provides that Form 5498-SA can be sent until May 31 to ensure that all contributions (including those made before April 15 for the previous year) are reported to the IRS.
Do I have to send copies of these forms to the IRS?
No. First Horizon Bank sends a copy to you and to the IRS. You can keep the copy you receive for your records.
What if there is a mistake on one of my tax forms?
If you notice an error on one of the tax forms you receive from First Horizon, you should notify First Horizon Msaver immediately of the error.
What tax forms do I need to complete for my HSA?
In addition to completing your 1040, you may also need to complete Form 8889 and submit it with your tax return. The purpose of Form 8889 is to report contributions made to your HSA (whether made by you, your employer, or both), and to report distributions made from your HSA. If you (or someone on your behalf, such as your employer) made contributions to your HSA, you received distributions from your HSA, or you acquired an interest in an HSA due to the death of the account owner during the previous tax year, you must file Form 8889.
What if my spouse and I both have our own HSAs - do we both have to complete a separate Form 8889?
Yes. If you both have an HSA, you must both complete separate forms.
How do I know how much my employer contributed to my HSA?
If your employer made contributions to your HSA (including contributions made through a cafeteria plan), that amount will appear on your Form W-2, in Box 12 (code W).
How do I know what my total distributions were?
Total distributions from your HSA are reported in Form 1099-SA, which you will receive by January 31. The total amount will appear in Box 1 of Form 1099-SA.
What if I acquired an interest in an HSA due to the death of the account owner?
If you acquired an interest as a designated beneficiary of an HSA due to the death of the account owner, and if you are the surviving spouse of the account owner, then the HSA continues to be treated the same way from a tax standpoint, and you must complete Form 8889 as if the account were your own.
However, if you acquired an interest as a designated beneficiary of an HSA due to the death of the account owner and you are not the surviving spouse of the account owner, the account ceases to be an HSA as of the date of the account owner’s death. In this case, there are special instructions for completing Form 8889. Refer to the Instructions for Form 8889 for details.
What if I over-contributed to my HSA?
To determine whether you made excess contributions to your HSA, subtract the amount of your deductible contributions from the amount of your actual contributions (both reported on Form 8889). Excess contributions can be corrected (and you will not be subject to additional taxes and penalties) provided they are withdrawn prior to the due date for filing your income tax return (including extensions) along with any income earned on the excess contribution, and you include the earnings in “Other Income” on your tax return. Please note that you cannot claim a deduction for the amount of the excess contribution that you withdraw.
To withdraw an excess contribution made to your First Horizon HSA, simply complete an HSA Distribution Form (available on the First Horizon Msaver website) and indicate the information pertaining to your excess contribution under the section “Distribution Reason.”
What if I made a non-qualified distribution from my HSA?
If you withdrew funds from your HSA for a non-qualified expense, you must report the amount as income on Form 8889 and pay an additional 10% tax on the amount of the non-qualified distribution.
There are several exceptions to the additional 10% tax, including distributions made after the account owner dies, becomes disabled, or turns 65. If you made a non-qualified distribution and any of these exceptions applies to you, you can indicate that information on Form 8889.
You can also repay a mistaken distribution to your First Horizon HSA provided the distribution was made because of a mistake of fact. You have until April 15 of the first year following the year in which you knew or should have known the distribution was a mistake. To replace a mistaken distribution taken from your First Horizon HSA, simply complete a Mail-in Deposit Form (available on the First Horizon Msaver website) and indicate “Reimbursement” under the section “Deposit Type.”
As always, our dedicated staff at First Horizon Msaver is here to help. Feel free to call our Customer Care Center at (866)-889-8583 if you have any questions or concerns.
Well, not actually in the game. That could be risky. But close enough to feel all of the intense action. All you have to do is recommend the First Horizon Visa® HSA Debit Card to your customers enrolled in an HSA-qualified high deductible health plan. For every referral that results in your customers being issued a card, you’ll earn one entry for a chance to win a trip for two to the 2009 NFL Pro Bowl in Honolulu, Hawaii courtesy of Visa®!
We’ll make sure you have everything you need to enjoy your trip, including:
Airfare
Accommodations
Event transportation
Two game tickets
And a $500 Visa® gift card to spend as you wish!
Don’t miss out on this once-in-a-lifetime opportunity. To participate, you must be a registered First Horizon Msaver broker. Registration is quick and easy - simply click here, or go to www.firsthorizonmsaver.com/visa, to get started.
stltoday.com,October 19, 2008
High-deductible plans cost less than conventional insurance, so many employers agree to put money into Health Savings Accounts that can be used to offset the deductible. Employees also can contribute to the accounts. The money can be used for a broad range of medical expenses, from meeting deductibles to paying for medicines and medical equipment.
(Read More)
businessinsurance.com, September 17, 2008
High-deductible health insurance plans linked to Health Savings Accounts will be automatically considered in compliance through 2009. (Read More)
about.com, October 16, 2008
Many experts believe that if patients better understood the cost of the services and products they want and need, making those costs transparent, then they would ration care themselves, rather than simply expecting their choices to be covered by their payer. (Read More)
You can now have your First Horizon Msaver quarterly referral fees directly deposited into your bank account. Simply fill out the Electronic Funds Transfer Form and send it to our office along with a voided check.
First Horizon Msaver, Inc
7400 W 110 St, Ste 520
Overland Park, KS 66210
Please note that if you choose to have your referral fee direct deposited, you will continue to receive the account breakdowns each quarter for your records.