Apparently the majority of employees don't understand HSAs, according to recent reports. Is it any wonder? When my employer can publish an over-350-page book with single spaced Q&As about Health Savings Accounts rules and regulations*, you know these accounts are a little more complicated than they seem. At least on the employer end.

Here's the ultra-basic, bottom-line, bare-bones test for HSA eligibility -- can the employee meet the following 4 requirements?

  1. They have to be enrolled in an HSA-eligible health plan such as a high-deductible health plan.
  2. They must not be enrolled yet in Medicare.
  3. They cannot be claimed as a dependent on someone else's tax return.
  4. They must not be covered under another, non-HSA-eligible health plan.

But eligibility might be the easy part of this equation. One of the harder-to-solve parts is the confusion and uncertainty about HSAs. The gallery above shows five common HSA myths, according to a new whitepaper from the Defined Contribution Institutional Investment Association (DCIIA).

Once that's cleared up and the myths are busted, communications can continue. DCIIA has several suggestions about the points employers might want to make with employees about HSAs:

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C.J. Marwitz

C.J. Marwitz is a writer and editor.