What is a Health Savings Account (HSA)?

HSAs were created to help control healthcare costs. They provide a savings vehicle that allows you to set aside money to pay for higher deductibles associated with lower monthly premium High Deductible Health Plans (HDHP). The money you save in monthly insurance premiums may be set aside for eligible medical expenses you incur in the future.

How it works:

You choose the payroll deduction contributions up to the maximum allowed by the IRS. Your HSA balance remains in your account year to year earning interest along the way. The account is portable. Upon retirement or separation of service, you take the HSA with you because it’s your money and your account. When you want to access the funds, use your benefits card to pay your provider directly or simply request reimbursement or distribution on our online portal or mobile app. Be sure to keep receipts for all of your medical expenses, for which you received a reimbursement, for at least three years for tax-reporting purposes. See HSA flyer below for more details on who can participate.

HSAs Offer a Triple Tax Advantage

• The money you put in to the account is deducted from your paycheck before tax
• The interest and earnings you make on the account grow tax free
• Distributions for eligible medical expenses are tax free
• At age 65, you can withdraw your HSA funds for non-qualified expenses at any time, although they are subject to regular income tax. You can avoid paying taxes by continuing to use the funds for qualified medical expenses.

What are the key advantages of an HSA?

• No end-of-year forfeiture of funds
• Portable account
• Provides an excellent savings vehicle for healthcare expenses
• No monthly account fees.
• Free eStatements when you opt in for electronic delivery