HEALTH INSURANCE MATTERS
Understand the healthcare landscape and lingo. Know the ins and outs. Learn what questions to ask. Make confident decisions. Learn about a Health Savings Account (HSA). And more. Here’s the place to get smart and stay empowered.
HEALTH SAVINGS ACCOUNT CENTRAL
For a healthier understanding of this unique tax-savings vehicle, check out our helpful resources, FAQs and links to HSA-related tax forms.
What is an HSA?
- An HSA allows members enrolled in a qualified high-deductible health plan to use tax-free HSA funds to pay for qualified medical expenses as defined by the IRS.
- Members can have part of their pre-tax earnings deposited into an HSA.
- Members can also use savings or individual contributions to fund their HSAs.
- A member’s employer may also contribute funds to the account but contributions are optional.
- Members can rollover unused HSA funds at the end of each calendar year.
What are the benefits of an HSA?
- Contributions that members and an employer make to the HSA are tax-deductible.
- Earnings on a member’s HSA balance are not taxed, and funds withdrawn to pay for qualified medical expenses are not subject to income taxes or penalties.
- The HSA will remain in the member’s name and continue to earn interest, even if the member leaves or changes jobs
- To continue contributing to an HSA, a member must continue to be enrolled in a qualified high-deductible health plan.
- If your new employer or health insurance company does not offer a qualified high-deductible health plan, or a member chooses not to enroll in one, the member may still use the funds in their HSA for qualified medical expenses and earn interest, however the member won’t be able to contribute funds to the account.
Resources
Forms
Tax-deductible Health Savings Account contributions must be reported on IRS Form 8889.
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