Health Savings Account

Get control and lower your costs with an SMA Services, Inc. Health Savings Account

HSA Facts:

An HSA is a Health Savings Account. An HSA is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses of the account beneficiary. An HSA is designed to assist individuals that have High Deductible Health Plans (HDHP). You are only eligible to establish an HSA if you have an HDHP.

For more complete information regarding an HSA you should go to the U.S. Treasury Department website at or the IRS website at and review publication 553.

Am I Eligible For an HSA?

Are you covered by a High Deductible Health Plan (HDHP)?
(Your insurance provider can tell you if your plan is an HDHP)

If you are not covered by an HDHP you are not eligible for an HSA.

  1.  Are you covered by another Health plan that is not an HDHP?
    (Whether as an individual, spouse or dependent)
  2.  Are you enrolled in Medicare A or B?
  3.  Are you claimed as a dependent on another person’s tax return?

 If you answered “yes” to any of these three questions you are not eligible for an HSA.

An individual does not fail to be eligible for an HSA merely because, in addition to an HDHP, the individual has coverage for any benefit provided by “permitted insurance.” Permitted insurance is insurance under which substantially all of the coverage provided relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities relating to ownership or use of property (e.g. automobile insurance), insurance for a specified disease or illness, and insurance that pays a fixed amount per day (or other period) for hospitalization.

In addition to permitted insurance, an individual does not fail to be eligible for an HSA merely because, in addition to an HDHP, the individual has coverage (whether provided through insurance or otherwise) for accidents, disability, dental care, vision care, or long-term care. How much may I contribute?

 For 2012:

  • The maximum annual contribution to an HSA is the sum of the limits determined separately for each month, based on status, eligibility and health plan coverage as of the first day of the month.
  • The maximum annual contribution for eligible individuals with self-only coverage is $3,100.
  • The maximum annual contribution for eligible individuals with family coverage is $6,250.
  • Catch-up contributions can be made on behalf of individuals between the ages of 55 and 65. For 2012, the catch-up contribution is $1,000.

How to calculate your contribution?

a) Amount of Annual deductible based on your coverage $____________
b) Amount of Maximum contribution limit based on your coverage $____________
c) The lesser of (a) or (b) is your annual allowable contribution $____________

If each spouse has family coverage under a separate health plan, and both plans qualify as an HDHP, then both spouses are treated as covered under the plan with the lowest deductible and the contributions should be calculated that way. If both spouses covered under an HDHP have HSA plans, the maximum amount of contribution will be shared between the spouses. Spouses cannot contribute the maximum contribution limit to each of their HSA’s. However, each spouse can contribute the catch-up amount, if eligible, to his or her individual accounts.


The individual should determine if they are eligible for an HSA. For more complete details on an HSA go the U.S. Department of Treasury’s website at

To establish an SMA-HSA:

The individual must complete and sign:

  1.  Health Savings Account Custodial Agreement
  2.  HSA Beneficiary Form
  3.  Disclaimer Certification Form
  4.  Consent of Spouse for Community Property State (if applicable)
  5.  Submit initial contribution of $100 (minimum)
  6.  Submit Enrollment Fee to SMA Services, Inc., P.O. Box 190088, Birmingham, AL 35219. No account will be set up before the enrollment fee is received.
SMA Member SMA
$10 Enrollment Fee $15
$15 Annual Administrative Fee $25
$2 Distribution Fee $2
(over 4 per year)
$25 Wire Transfer Fee $25
$15 Overnight Courier Service $15
$25 Transfer to Another Institution $25

All administrative fees will be billed to accounts that have a balance on December 31st.

The SMA-HSA is invested with Acacia Federal Savings. The account will be invested in a money market account with a fluctuating daily interest rate. Please remember SMA Services, Inc. cannot make the determination of your eligibility to participate in an HSA. We can only provide the guidelines. As with all tax matters please consult your Tax Advisor or your Financial Consultant.

  CALL 800-423-4992 ext 170 for more information