Are HSAs/Health Savings Accounts available to Puerto Rican residents? If so, what are some companies or websites that offer these? I need to transfer my HSA compatible health insurance from the states to PR, if possible.
Puerto Rico establishes Health Savings Accounts - 10/31/08
CCH® PAYROLL — 10/31/08
Puerto Rico establishes Health Savings Accounts
Puerto Rico has established Health Savings Accounts (HSAs), which will allow contributions to the account to be exempt from personal income tax, and will apply to the taxable years that commence on and after January 1, 2009. Under the HSAs, the insured will choose the provider and/or health service that they want to receive payment and will pay for those services with the funds that had accumulated in their HSA, covering up to the total annual deductible. The employee and the employer both may make contributions to the HSAs. Once the insured has covered the high annual deductible, either charging the expenses eligible for medical attention to the funds in the HSA or with another source of funds, coverage from the traditional medical plan will begin.
The HSAs will allow annual contributions that are not considered income received by the taxpayer, that are deductible when taxed, and after the first year are converted into a savings vehicle with tax benefits. Upon reaching the age of 65 years, the owner of the HAS may withdraw the accumulated funds and use them for any purpose (it does not require a medical expense) without having to pay penalties, but will pay tax on the withdrawn amount. Amounts deposited in a health savings account beyond the limits for each year are subject to a 6% penalty. (
Act No. 156 of August 4, 2008, effective immediately.)
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