HEALTH SAVINGS ACCOUNT (HSA)

If you are enrolled in a high-deductible health plan, you are eligible to participate in a Health Savings Account (HSA). An HSA is an investment tool that helps you save for healthcare expenses, including deductibles, coinsurance, prescriptions, physician visits and more. For a list of HSA compatible expenses, please visit IRS.gov.

Contributions to your HSA are pre-tax, and any interest earned on the account is tax-free. You may opt to direct some funds from your paycheck directly to your HSA, making saving easy! These bank accounts are in your name and are separate from your employer. Balances rollover year after year. There is not a useit-or-lose provision with an HSA.

In addition to being contributed tax-free, interest earnings and withdrawals for qualified medical expenses are also tax-free. Triple tax savings!

What Expenses Are Allowed?

Advantages Of An HSA

• Medical (including copays, coinsurance), dental (fillings, ortho), and vision expenses (glasses, contacts, LASIK)

• Prescription medications (including prescribed over-the-counter drugs)

• COBRA and Long-Term Care premiums

• Acupuncture and chiropractor expenses

• Labs and x-rays

• HSA funds used for eligible expenses are tax-free

• Contributions are tax-deductible and earnings grow tax-free

• HSA funds roll over from year to year

• HSA accounts are portable and yours to keep, regardless of your employer or insurance carrier

• Deposits may be invested in mutual funds

• Plans eligible for HSAs come with a higher annual deductible

• HSA-eligible plans work differently than traditional plans. Take the time to fully understand how your plan works

Things To Consider

• You will need to save receipts for eligible expenses for tax filing purposes

• If you are over 55 years of age, you can make catch-up contributions

• You are not eligible for an HSA if you are insured by more than one health plan, including Medicare