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Hsa Insurance Account Question & Answers

2015 April 12
by Sarah Fields

Maria asks…

What is the max contribution that can be made to an HSA account in Illinois?

I am going to be getting individual health insurance for myself and will be opening an HSA account. What is the maximum that can be contributed each year to this account in Illinois?

Sarah Fields answers:

The maximum for 2009 is $3000 single $5950 family. You can also contribute an additional “catch up” contribution of $1000 if you are over age 55. The maximum is a federal law and has nothing to do with your state or which company you have. Contrary to an above answer the funds in the account will roll over each year; you do not lose the money if you don’t use it.

Paul asks…

What happens to HSA and 401k money when you quit a job?

What happens to money that you had put away in your hsa when you quit your job and lose your insurance? Also what happens to 401k funds that you had put away?

Sarah Fields answers:

I’m not sure about the HSA but the 401K can be rolled over into a Roth IRA without any penalties for yourself. I have heard some companies want to hold onto YOUR 401K’S but don’t let that happen. I assume you are fully vested. I do know that, if you are not, some companies will only give you a certain percentage of the monies that they had added to your 401K account.

Laura asks…

What is a Health Savings Account? And should I start me a 401K?

It’s open enrollment at my workplace. I’m 27 with three children. Would either of these benefit my family and I. My children have peachcare, but I don’t have health insurance at the current moment. I’ve been searching for a health care plan at a reasonable rate. Any suggestions? Would the HSA do me any good? What about the 401 K? Please give details. Thanks!

Sarah Fields answers:

The HSA (health savings account) would do you great deal of good! Especially with kids. What the HSA does is take a certain dollar amount out of your check before taxes. It puts it into basically a savings account. You then use this money for things like co-pays, medicine, if you need anything to do with the medical world it can be paid from this account. If your employer is offering these plans, get on their health insurance program. And do the HSA, it will be great because then you have your medical money already set aside when the kids get sick!

YES YES YES start the 401k as well! This is freeeeeeee money from your employer! If you want a 3% (on average) raise per year, get the 401k! Not only will it give you money from your employer now, it will grow to amazing amounts as long as you keep it going!

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