Health Savings Account (HSA) Deposit, Grow, S a v e a nd Pay. E x t e n d Your Health C a r e Dollars. When you elect medical coverage under the HSA Plan, you can take advantage of a Health Savings Account (HSA). A n HSA is a pre-tax benefit account used t o pay for eligible medical, dental, and vision care expenses that aren’t covered b y your insurance plan, or items that apply towards your deductible, copays, and coinsurance. It’s a smart, simple way t o save money while keeping you and your family healthy and protected. The money comes o u t of your paycheck over the course of the year. The amount you contribute t o the HSA is n o t subject t o Social Security (FICA), federal, state, or local income taxes— effectively adjusting your annual taxable salary.
Money left in the savings account earns interest and is yours to keep. With an HSA, you save in three ways: The money you put in your HSA account is not subject to income tax. •
Funds in your account grow tax-free.
•
You don’t pay taxes on withdrawals (providing they are used for qualified medical expenses)
•
HSA-Compatible Health Insurance
HSA Advantages HSA’s are owned by the employee. You take the money with you if you were to leave your employer If you don’t use the money, it simply rolls over to the next year. You do not lose it!
Calendar Year 2021 HSA Contribution Limits* If you…
You may contribute up to….
Have Employee only coverage
$3,600
Cover dependents
$7,200
Are age 55+ and have and have employee only coverage*
$4,600
Are age 55+ and cover dependents*
$8,200
*If you do not contribute the maximum, the catch-up contribution won’t be as meaningful because it is meant t o allow you t o contribute more than the annual limit *Not everyone is eligible to participate in an HSA. You must be enrolled in the HSA Plan. If you are enrolled in TRICARE, Medicare Part A, or another plan that is not a high deductible health plan, you are not eligible t o contribute to an HSA.
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