Contributions made by an eligible individual to an HSA can be deducted from adjusted gross income. The amount paid out of the account, or account balances do not matter.
Contributions are deductible whether or not the eligible individual itemizes deductions*.
*Individuals cannot also deduct the contributions as medical expense deductions under section 213.
Employer contributions to the employee's HSA are treated the same as employer-provided health insurance premiums and are excludable from the employee's gross income.
The employer contributions are not subject to withholding from wages for income tax or subject to the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA)
What is an HSA?
Why an HSA?
Who is eligible for an HSA?
Is an HSA right for everyone?
Do I need a certain type of Insurance Plan?
Do I need a certain type of account?
Employer Benefits of HSA Plans
Employee Benefits of HSA Plans
HSA Tax Treatment
Tax Treatment: Inviduals
Tax Treatment: Employer Contributions
How are Distributions Taxed?
Who May Contribute?
How much may be contributed to an HSA in calendar year 2010?
Tax Treatment of Contributions
What are catch up Contributions?
What are “Qualified Medical Expenses?”
Are health insurance premiums qualified medical expenses?
How are claims adjudicated and processed?
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