Good Neighbor Insurance (dev.gninsurance.com and www.gninsurance.com) is continuing to update our clients on the new health insurance laws that were signed into law in the spring of 2010. There are six major coverage options for those in the US and even though some of the rules and regulations are similar for all many differences are there and it all depends on how old you are and for whom you work. Many critical details of this new insurance law will be clarified in the months and years to come.
These six major coverage options are:
(1) Individual or family coverage (private health care plans)
(2) Employee/employer group option for small businesses (typically under 50 employees)
(3) Employee/employer group option for large businesses (typically larger than 50 employees)
(4) Exchange options through the state you are residing in (fully integrated 1-1-2014 and are quasi-government and private insurance coverage combined)
(5) Medicare (which include Parts A, B, C, and D) for those 65 years onwards
(6) Full government health plans like Medicaid, CHIP, TRICARE, VA and other coverage plans as may be designated by the Department of Health and Human Services based mostly on financial criteria and/or military service.
As tax time approaches, here are some Frequently Asked Questions and Answers to some of the more common HSA tax and contribution concerns.
How much can I contribute to my HSA for 2010 and 2011?
The amount that you can contribute to your account is based on your type of insurance coverage. Please review the chart below for the contribution limits.
If you are over the age of 55, you can also contribute a catch-up contribution of $1,000 in both 2010 and 2011.
Can I still contribute to my HSA for 2010?
Yes, you have until April 15th or the day you file your taxes to contribute to your HSA for the prior year.
What tax forms will I get in the mail for my HSA?
You could receive up to two tax forms for your HSA each year.
Distributions: Your bank should have sent you Form 1099-SA in January. This form showed total distributions (withdrawals) made from your HSA during the previous year. This form is only sent if distributions were made from your account for tax year 2010.
Contributions: Your bank should send you Form 5498-SA by May 31. This form will show total contributions (deposits) made to your HSA for the previous year. This form will only be sent if contributions were made to your account for tax year 2010.
Why won’t I receive Form 5498-SA until May 31?
You have until April 15 or when you file your taxes, 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. Your 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 your bank than call your bank (where you have your HSA bank account) up immediately of the error.
Doug Gulleson loves to scuba dive overseas and makes sure he has his US health care and overseas health care information with him at all times when he travels, www.gninsurance.com/gap-year. Keep our blog close by you, www.gntravelinsurance.com , for continual updates on the changes with the US health care system.