Health Savings Accounts (HSA) are a tax-advantaged medical savings account available to those who enroll in the High Deductible Health Plan (HDHP). The funds you invest are not subject to most taxes. The growth of the invested amount is not taxed and when the funds are distributed, no tax penalties are incurred when applied to qualifying expenses. The funds you contribute to your HSA are yours to keep and can be used not only for medical expenses, but for medical expenses after retirement.
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Great Benefits for You
Convenience – Paying for expenses from your HSA is as
easy as using a debit card.
Choice – Pay for qualified expenses from your HSA or save
your HSA money and pay out-of- pocket.
Control – You decide how the money is spent and you have
the freedom to keep it if you change jobs or retire
Triple-Tax Savings
Tax-Free Deposits – Even if you don’t itemize deductions,
you don’t pay federal income tax on contributions.
Tax-Free Savings – You keep any money you don’t spend
and it grows tax-free. No use-it-or-lose-it.
Tax-Free Withdrawals – There’s never tax on withdraws to
pay for qualified expenses.
How to Open Your HSA
Once you enroll in the HDHP you can open an HSA account online at Optum Bank. Complete a Payroll Deduction form. This form is used to set the amount of money, pre-taxed, to be deducted from your paycheck per pay & deposited directly into your HSA.
Contribution Limits
Catch-up Contribution for age 55 and over: $1,000 per year
Examples of Qualified Medical Expenses
Acupuncture
Alcoholism treatment
Ambulance
Artificial limbs
Braces
Childbirth preparation classes
(mother)
Chiropractors
Contact lenses
Crutches
Dental fees Dentures
Diagnostic fees
Doctor’s fees
Drug addiction recovery
Dyslexia language training
Eyeglasses and examination fees
Hearing aid and batteries
Home modifications for handicapped
Insulin
Laboratory fees
Maternity expenses
Nursing homes Optometrists
Orthodontia
Orthopedic shoes
Oxygen/oxygen equipment
Prescription drugs
Psychiatric care
Therapy treatments (prescribed)
Transportation (for medical care)
Vision correction surgery
Vitamins (if prescribed)
Wheelchairs
X-rays
