Make the most of your HSA
HSA Carrier Name
- Phone: 800.XXX-XXXX
- Website: hsawebsite.com
How the HSA Works
- You contribute pre-tax dollars through automatic payroll deductions or make after-tax contributions that are deductible when you file your taxes.
- The company will deposit funds into your account to help it grow.
- You may change your contributions at any time throughout the year.
- You can withdraw HSA funds tax free to pay for current qualified health care expenses, or save them for the future, also tax free. Unused funds roll over from year to year and are yours to keep, even if you change medical plans or leave your employer.
Contributions
| 2024 Contribution Limits | |
| Individual | $4,150 |
| Family | $8,300 |
| Catch-up Contributions (if age 55+) | $1,000 |
Qualified Health Care Expenses
- Qualified medical, dental and vision expenses not covered by the plans, as defined by the IRS in Publication 502
- COBRA premiums
- Qualified long-term care insurance and expenses
- Health insurance premiums when receiving unemployment compensation
- Medicare and retiree health insurance premiums (not Medicare Supplement premiums)
- Medigap insurance premiums
Key Features of the HSA
Triple-tax Advantage
- You contribute funds pre-tax through convenient payroll deductions. This means the money comes out of your paycheck before income tax is calculated. So, you get to keep a bigger portion of your paycheck.
- HSA funds grow tax free, and unused funds roll over year to year. So, the more you save, the more your account will grow—just like a bank savings account.
- If you need to use your HSA funds, you can withdraw them tax free to pay for qualified health care expenses now and in the future—even in retirement.
Control
You own and control the money in your HSA. You decide how or whether you want to spend it. You can use it to pay for doctor’s visits, prescriptions, braces, glasses—even laser vision correction surgery.
Investment Opportunities
Once you reach and maintain a minimum threshold, you can make investments to help your money grow tax free.
Savings Potential
Your HSA is like a “health care 401(k).” There is no “use it or lose it” rule. Your account grows over time as you continue to roll over unused dollars from year to year.
Portability
Your HSA is yours for life. The money is yours to spend or save, even if you change health plans,* retire or leave the organization.
*You must be enrolled in an IRS-qualified high-deductible health plan to contribute to an HSA.
Important Notes
- You must meet certain eligibility requirements to have an HSA: You a) must be at least 18 years old, b) must be covered under a qualified HDHP, c) must not be enrolled in Medicare and d) cannot be claimed as a dependent on another person’s tax return. For more information, please refer to IRS Publication 969.
- Adult children must be claimed as dependents on your tax return for their medical expenses to qualify for payment or reimbursement from your HSA.