HSA

A Health Savings Account (HSA) is a type of personal savings account you can set up to pay certain health care costs. An HSA allows you to deposit money, invest what is not used, and withdraw tax-free.. You’re eligible to contribute to an HSA when you are covered by certain high deductible health plans. 

Do you qualify???

If you are enrolled in a high-deductible health insurance plan (HDHP) as defined by the government, you can qualify for an HSA. 

  • Must have a minimum deductible as set by the IRS. You can check the current limits here: https://www.irs.gov/government-entities/federal-state-local-governments/where-can-i-learn-more-about-health-savings-accounts-hsa-and-health-reimbursement-arrangements-hra

  • Must limit the maximum out-of-pocket expenses

  • Can use any plan design: HMO, POS, or PPO 

  • Require a member to meet the deductible before the health plan benefits apply - all covered medical and prescription costs count toward the deductible 

  • Are allowed to cover preventive care services before the deductible is met 

  • Can be fully funded or self-funded 

  • Cover standard services, such as physician services, hospital visits, preventive care, prescription drugs, etc. 

  • Pay all covered medical and prescription drug services in full for the rest of the year once the member meets the out-of-pocket maximum

Triple tax benefit

  1. Contributions can be made pretax from your employer

  2. Account balances grow tax-free. Any interest, dividends, or capital gains you earn are nontaxable

  3. Withdrawals for qualified medical expenses are tax-free

Investing in your HSA can potentially provide additional income through capital gains. You can utilize brokerage firms (Fidelity) to invest your HSA funds that are not used. 

With all investments, please perform research and choose the right investment option that’s best for your current/future needs.