Start Saving for Tomorrow.
An HSA is a great resource that allows you the ability to put money away with triple tax savings that can be use now or later in life.
When you retire, you can use the money in your HSA to pay your Medicare premiums and many other retiree health insurance premiums.
Triple Tax Savings?
The contributions to an HSA can help reduce your tax burden making saving easier early on, and keeping your retirement money for your retirement:
- The money contributed to an HSA goes in before taxes are taken out of your paycheck, reducing your taxable income.
- The money invested and earned from an HSA account grows tax free in your account.
- No matter what your age, distributions used to pay for qualified medical expenses come out of an HSA tax free.
Have more questions about how you can benefit from and HSA? Give us a call: 1-800-57-MyHSA
HSAs are on the Rise
As the cost of health care continues to rise and the projected financial cost for retiree medical expenses grows, HSAs are becoming increasingly popular.
Experts cite retiree medical expenses could eclipse an average of $285,000. An HSA is a great way for eligible individuals to start building tax-free savings that they can take with them into retirement.
Healthcare Costs Continue to Rise
Surprising no one, the cost of healthcare in the U.S. and around the world continues to rise dramatically and outpace inflation.
...are thinking more about their healthcare than in previous years.
...of survey respondents said they wouldn’t be financially prepared to cover medical expenses.
...of consumers would use a health savings account (HSA).
*Workplace Benefits Report, Bank of America, 2020
...don’t have enough to cover an ER visit or a surprise medical bill.
*Alegeus platform data
The Money in Your HSA Belongs to You!
Your HSA belongs to you. If you change jobs your HSA account stays with you. When you become ineligible to contribute to your HSA you can continue to use the money in your account to pay for qualified medical expenses tax free.
The money not spent in an HSA account by the end of the year stays in the HSA account and the account holder continues to have access to those funds to pay for future qualified medical expenses.
What items are considered Qualified Medical Expenses?
HSA account holders can use the money in their HSA to pay for their own qualified medical expenses and the qualified medical expenses of their spouse and any eligible dependents tax free. Below is a partial list of Qualified Medical Expenses.
- Annual physical examination
- Contact lenses
- Hearing aides & batteries
- Laboratory tests
- LASIK eye surgery/vision correction surgery
- Nursing home and services (including board and meals)
- Orthopedic shoes
- Over-the-counter items (certain items)
- Prescription medicines
- Stop-smoking programs
- Therapy equipment
For a complete list of Qualified Medical Expenses please refer to IRS Publication 502.
How much can be Contributed to an HSA?
Contributions to HSAs can be made by both the employer or the individual account holder. Contributions can also be made by others on behalf of an eligible individual and deducted by the HSA account holder.
The maximum amounts allowed for contributions can change from year to year. Below are the most recent yearly amounts provided by the IRS. However, changes can occur at any time.
For the most up-to-date information, please refer to IRS Publication 969 for any recent changes that may not be reflected here.
So Why Fund an HSA?
As of the end of 2020, there were over 30 million Health Savings Accounts and over $82.2 billion in HSA assets. It is estimated that by the end of 2021 there will be over $96 billion in HSA assets.1
1Devenir Research 2020 Yearend HSA Market Statistics & Trends Executive Summary