What if there was a way to save for future health care costs that was tax-free, rolled over year to year, and goes with you even if you change medical plans or leave your employer.
Well, there is, with a Health Savings Account sponsored by your employer
and administered by PayFlex.
Here’s how it works…
You can open a Health Savings Account – or HSA – if enrolled in a qualifying high-deductible health plan.
With the exception of some preventative services, this plan means you pay for medical expenses out-of-pocket until your deductible is met.
HSA can help you pay for out-of-pocket medical, dental, prescription, hearing and vision expenses with pre-tax dollars.
With an HSA you get a triple tax savings.
First, when you deposit your money from your paycheck on a pre-tax basis into the HSA, you reduce your taxable income
so you pay less in income taxes for that year.
Second, any interest you earn or any growth you may gain when you invest your HSA funds is tax-free.
And finally, when you use your HSA funds for eligible expenses, those withdrawals are tax-free.
It’s also good to know that with the HSA you can change your pre-tax contributions and make additional post-tax deposits during the plan year up to the IRS limit.
In most cases, once you have at least $1,000 in your HSA, you can open an investment account. Then, any funds over
the $1,000 balance can be invested in a variety of mutual funds.
Some people even like to think of their HSA as a retirement account for health care, to help pay for medical premiums and long term care.
Whatever HSA funds you don’t use in the plan year roll over to the next year and may continue to grow.
When you enroll in an HSA, PayFlex provides you with helpful tools needed to manage your account.
For added convenience, you may receive a PayFlex Card, your account debit card which is linked to your HSA account allowing you to pay for eligible health care expenses at qualified merchants where debit MasterCard is accepted.
Be aware that unqualified purchase may be subject to penalties and have tax implications.
You can access your HSA virtually anytime, anywhere through our dynamic website.
Or by using our innovative PayFlex Mobile App which brings the website and all of its functionality to your fingertips.
Take control of your health care spending and start enjoying all the benefits of an HSA today.
This has been a brief summary of an HSA. For more information refer to your plan benefit materials.
