Making Contributions

• Annual Deductible Limit – You can contribute and deduct from your taxes up to 100% of your annual health plan deductible.

Receiving Distributions

• When you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. Follow the instructions for the form and attach it to your Form 1040.
• If you take a distribution from your HSA after age 65, for any purpose other than qualified medical expenses, you pay income tax on the distribution.