mountain west ira

Health Savings Account (HSA)

Contribution Limits

Click here to download → Contribution Limits

How to Open a Self-Directed Health Savings Account (HSA)

We have step-by-step directions HERE.
You may also view our Process Diagram HERE.
If you have any questions, please contact our office HERE.

What is a Health Savings Account (HSA)?

A Mountain West IRA self-directed Health Savings Account (HSA) combines high deductible health insurance with a tax-favored savings account. Contributions to the HSA are 100% deductible, just like a traditional IRA. Unlike a traditional IRA, distributions used to pay qualified medical expenses can be taken tax-free at any time. All other assets left in the account remain tax-deferred.

Who Can Have a Health Savings Account (HSA)?

Covered by qualified high deductible health insurance plan (HDHP).
Not covered by other health insurance.Not enrolled in Medicare.
Not another person’s dependent.

HSA Contribution Limits

HSA contribution limits are established annually by the IRS and vary based on individual or family coverage.
View Current Contribution Limits HERE.

How Do I Open a Self-Directed Health Savings Account (HSA)?

Step-by-Step Instructions: Learn how to open and fund your self-directed HSA HERE.
Process Diagram: View our step-by-step account opening and asset purchase process HERE.

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-advantaged account that allows eligible individuals to save for qualified medical expenses.

HSAs offer three potential federal tax advantages:

  • Tax-Deductible Contributions: Eligible contributions may be deductible or made through pre-tax payroll deductions.
  • Tax-Deferred Growth: Earnings generally accumulate tax-free while held in the HSA.
  • Tax-Free Withdrawals: Distributions used for qualified medical expenses are generally tax-free.

Who Can Have a Health Savings Account (HSA)?

To be eligible to contribute to an HSA, you generally must meet the following IRS requirements:

  • Be covered by an HSA-eligible high-deductible health plan (HDHP).
  • Have no other disqualifying medical coverage, except coverage permitted under IRS rules.
  • Not be enrolled in Medicare.
  • Not be eligible to be claimed as a dependent on another person's tax return.

Eligibility to make contributions is determined under IRS rules. Individuals who are no longer eligible to contribute may still retain their HSA and use existing funds for qualified medical expenses.