What is an HSA?
An HSA is designed to work with a qualifying high-deductible health plan (HDHP). The money goes in tax-free, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses.
You can carry over unused funds from year to year and the account is yours to keep even if you change jobs, change health plans or retire.
What is an HSA
Take charge of your healthcare spending.
Save smart, it’s easy with an OPTUMBank® Health Savings Account or HSA.
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An HSA is used to save for qualified medical expenses for you and your eligible dependents, both now and in the future. It works like a regular bank account.
However, an HSA has big tax benefits.
In fact, in most cases there are three ways an HSA helps you keep your money in your pockets and out of Uncle Sam’s.
First, generally you won’t pay federal income tax on money you deposit into your account. Keep in mind the IRS sets limits on how much you can contribute each year.
Second, you won’t pay income tax on money you use for qualified medical expenses, that includes vision and dental expenses.
And third, your savings grow income tax free, helping you create a nice little nest egg for retirement.
More good news, with an HSA there’s no use it or lose it rule,
(Graphic of ‘Use it or Lose it’ text breaking in half creating a tearing sound)
…that means the money in your account is yours to keep, even if you change jobs or health plans.
Who’s eligible for an HSA?
The main requirement is that you’re covered under a qualifying high deductible health plan or HDHP.
Although there are additional requirements defined by the IRS.
(Additional Requirements included: Not enrolled in Medicare, not covered by any other health plan that…, covered under an IRS qualifying HDHP, may not be claimed as a dependent on another)
So, don’t wait, if you don’t already have an HSA open one!
(Talk to your employer or visit optumbank.com)
If your HSA is already up and running, contribute to it.
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Start taking charge of your healthcare savings and spending with an OptumBank Health Savings Account, an easy way to save smart.
(Learn more at optumbank.com)
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Heath savings accounts (HSAs) are individual accounts offered or administered by Optum Bank, Member FDIC, and are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change.
© 2017 Optum, Inc. All rights reserved. PR1553 65976-062017
Learn more about an HSA
Life has its surprises but with an Optum Bank HSA, paying for qualified medical expenses won't be one of them. Learn more about the benefits of an HSA.
Save money and save on taxes
Keep Uncle Sam out of your pocketbook. The money you contribute to your HSA goes in, grows and comes out income-tax free when used for qualified medical expenses. You know you're going to need it — so why not save on taxes, too?
There is no "use it or lose it" rule
You get to keep the money in your HSA, no matter what, even if you change jobs or move off a qualifying high-deductible health plan. When you, your employer or anyone else makes a contribution to your HSA, it stays there so you can use it when you need it.
It's a family affair
You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. This is a great way to plan for unexpected medical expenses, from your deductible to an ER visit, for the whole family.
Invest your HSA dollars
In addition to contributing to your 401(k) you can also invest your HSA dollars to help grow your balance. Unlike a 401(k) when you use HSA funds for qualified medical expenses — it’s always 100% income tax-free. Learn more about our investment options.
Start planning for retirement
An HSA is a great tool to help you prepare for future health care costs and retirement. After turning 65 you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies. As you're planning for the future, your HSA can ease your mind and prepare you for retirement by saving money income tax-free.