What’s an HSA and is it Right for You?

What’s an HSA and is it Right for You?

Print Friendly, PDF & Email


This month’s employee memo gives participants answers to common questions on HSAs. Download the memo from your Fiduciary Briefcase at fiduciarybriefcase.com and distribute to your participants. Please see an excerpt below.

Health savings accounts (HSAs) have grown tremendously in popularity over the past few years. You’ve probably heard of them or maybe your employer offers one. This memo will uncover answers to common questions you may have about HSAs.

What’s an HSA?
A type of savings account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses.

Can anyone get an HSA?
In order to open an HSA, an individual must first enroll in a qualified high deductible health plan (HDHP).

I’ve heard HSAs have triple-tax advantages, what are they?

  1. Contributions are tax-free.
  2. Contributions can be invested and grow tax-free.
  3. Withdrawals aren’t taxed if used for qualified medical expenses.

If I change employers, what happens to my HSA?
HSAs are completely portable for employees, meaning you may take it with you if you change employers.

Do I lose my HSA funds at the end of the year?
No. The balance can grow and carry from year to year and can also be invested.

What can I pay for with my HSA?
Generally HSA funds can be used to pay for anything that your insurance plan considers a “covered charge,” including charges not paid by your health insurance because they were subject to a co-pay, deductible or coinsurance.

Print Friendly, PDF & Email


Related Posts

Estimating Your Financial Needs for Retirement

Estimating Your Financial Needs for Retirement

Financial planners who conduct pension consulting have been pointing out that you can find yourself in trouble when you reach retirement if you’re saving without a goal. Many people have been saving for retirement without taking the time to figure out how much they’ll...

7 Tips to Prepare You for Retirement

7 Tips to Prepare You for Retirement

A secure and happy retirement requires careful planning and is a well-constructed process. Starting now will give you plenty of time to make the strategic changes and improvements that will bring your retirement goals closer to reality. Here are seven things you...

Financial Frost Checkup

Financial Frost Checkup

As the winter season blankets our surroundings, it's the perfect time to conduct a comprehensive review of your financial situation. Adapting to Life's ChangesReflect on the past year and consider any shifts in your personal, family, or financial life. If changes have...

Share

Share this post.