{"id":238552,"date":"2021-04-28T11:54:24","date_gmt":"2021-04-28T18:54:24","guid":{"rendered":"https:\/\/clearbenefits.ca\/?p=238552"},"modified":"2021-07-20T13:22:07","modified_gmt":"2021-07-20T20:22:07","slug":"important-things-to-know-about-hsa-accounts-in-canada","status":"publish","type":"post","link":"https:\/\/clearbenefits.ca\/important-things-to-know-about-hsa-accounts-in-canada\/","title":{"rendered":"5 Important Things to Know About HSA Accounts in Canada"},"content":{"rendered":"\n

The health care system in Canada is very different from the US. You may have heard of Health Savings Account (HSA) accounts, but did you know that they’re a little different in Canada? Here are the 5 main differences between HSA accounts in Canada and the US, and what you need to know about them.<\/p>\n\n\n\n

1. All employees are eligible for HSA in Canada<\/strong>:<\/h3>\n\n\n\n

HSA in Canada is a tax-effective employee account. It is sponsored by the employer to reimburse health care and dental expenses. The employer deposits a predetermined amount in the health savings account and all employees can benefit from it. Here is a detailed guide on how HSA works in Canada.<\/a><\/p>\n\n\n\n

Only individuals covered under high deductible health plans can create a health savings account in the US. A person with an existing health plan or Medicare is not eligible for HSA in America.<\/p>\n\n\n\n

2. HSA in Canada is primarily sponsored by employers<\/strong>:<\/h3>\n\n\n\n

A health savings account is set up to provide benefits to the employees that are not covered by the existing health care plan. In Canada, HSA is a benefit to the employees to reimburse their medical expenses.<\/p>\n\n\n\n

HSA in the US can be funded by both the employer and the employee. The amount of contribution is at their discretion.<\/p>\n\n\n\n

3. No limits on annual contribution<\/strong>:<\/h3>\n\n\n\n

There is no upper limit on the amount of contribution to the HSA account. The employer can make a budgeted contribution or reimburse as the claims occur. The contract between the employer and the employee is the only governing factor of the amount credited to the account.<\/p>\n\n\n\n

The HSAs in the US have a limit on the annual contribution amount. The maximum deposit in the HSA is $3600 for individuals and $7200 for families. People above the age of 55 can make an additional contribution of $1000 to their health savings account. The upper limit applies to the total contribution by the employer and employee.<\/p>\n\n\n\n

4. Withdrawals are allowed only for permissible medical expenses<\/strong>:<\/h3>\n\n\n\n

HSA in Canada reimburse the following expenses<\/h4>\n\n\n\n