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A health savings account (HSA) is a tax-advantaged savings account established for the purpose of paying or reimbursing qualified medical expenses for an individual, spouse or family.
An HSA provides triple tax savings. Funds are deposited on a pre-tax or tax-deductible basis, earnings grow tax free and withdrawals for qualified medical expenses are tax free.
HSA funds roll over from year-to-year, and you may use or keep your funds depending on your financial needs.
In short, an HSA is like a 401(k) or IRA for your medical expenses, only better because withdrawals for qualified expenses are tax free.
A consumer-driven health plan (CDHP) is a health plan that typically has lower premiums than other health plans, and the individual is responsible for paying medical expenses until their deductible is met. Yearly exams and preventative care are covered 100% through a CDHP, so the individual generally pays for treatment, prescriptions, etc. outside of annual prevention. To determine if you have an HSA-qualified CDHP, contact your health insurance provider.
Federal regulations require you to meet these eligibility requirements in order to contribute to an HSA.
You must be:
You must not be:
Yes. In additional to paying your own expenses, you may use your HSA to pay your spouse’s and/or child(ren)’s qualified expenses, regardless of their insurance coverage. For additional information regarding domestic partnerships, divorce, etc., see IRS publication 969.
You are responsible for determining whether you are eligible for an HSA, whether your contributions/withdrawals are qualified and for seeking tax, legal and/or investment advice as needed.
Yes. You may contribute to your HSA outside of payroll deductions by contributing online. Be sure to monitor your contributions to ensure that you do not exceed IRS annual contribution limits.
The deadline for contributions is the federal income tax deadline, generally on April 15 each year.
Yes, but funds used for non-qualified medical expenses must be reported on your annual income taxes and are subject to income tax and a 20% penalty. The 20% penalty doesn’t apply to withdrawals made after you’ve reached age 65 or after your disability or death.
There is no deadline for submitting claims for reimbursement from an HSA. In the event of an IRS audit, you will be required to produce receipts for any medical expenses for the amounts that have been reimbursed from your HSA.
Our custodial bank reports withdrawals on Form 1099-SA and contributions on Form 5498-SA. These forms are mailed to the account holder and the IRS. As the account holder, you are responsible for reporting contributions and withdrawals on Form 8889 when you file your annual income taxes. HealthSavings is not responsible for monitoring your contribution limits or withdrawals.
Once you’ve enrolled in Medicare, you are no longer eligible to make contributions to your HSA. You will need to adjust your annual HSA contribution limit (and catch-up amount) based on the number of months you were eligible to contribute that year. For example, if you enroll in Medicare as of July 1, your annual contribution limit will be reduced by half, because you were only eligible to make HSA contributions for six months (January 1 – June 30).
After Medicare enrollment, in addition to the normal medical expenses, you can also use your HSA funds to pay for Medicare and IRS approved health insurance premiums. Premiums for Medicare Parts A, B and D, Medicare HMO and any employer-sponsored health insurance are considered eligible medical expenses that can be paid with your existing HSA funds.
Medicare enrollment is what disqualifies you from being eligible to contribute to your HSA. Eligibility alone doesn’t impact you being able to contribute to your HSA. *Please note that you cannot opt out of Medicare Part A without opting out of all Social Security benefits.
Your HealthSavings HSA allows you to save money on current medical expenses, as well as grow your funds for the future. Your savings are FDIC-insured, and you can get 2 free debit cards. The interest you earn in the cash account increases as your account balance increases and there are no monthly low balance fees.
You can also invest your HSA funds if you choose. Your HealthSavings HSA offers a wide range of investment options in your choice of low cost, high quality mutual funds from Vanguard and Dimensional. Also, there is no minimum balance required to invest and no trading fees.
Interest is credited monthly based on the balance in your savings. Interest rate is subject to change at the discretion of HealthSavings at any time.
|$25,000 or more||0.25%|
|$15,000 – $24,999.99||0.20%|
|$10,000 – $14,999.99||0.15%|
|$5,000 – $9,999.99||0.10%|
|$0 – $4,999.99||0.0%|
Yes, click on LOGIN in the top right corner of this website, then enter your username and password. Remember, your username, password and answers to secret questions are case sensitive. Your username can be up to 18 characters. Your password must be at least 8, but no more than 16 characters. For increased security, you MUST use letters, numbers and one of the following special characters in your password: ! # $ % & ? @
Yes, our mobile-responsive portal provides you with the same seamless experience as an app without needing to be downloaded from an app store or updated by you. And the portal can quickly be saved to your home screen for easy access just like an app. Here are step-by-step instructions how to add the portal to your phone’s home screen.
You may contribute online or via pre-tax payroll deduction.
Your contributions are subject to a 5-7 business day hold and may not be available for immediate withdrawal.
To transfer funds from another HSA to your HealthSavings HSA:
You may withdraw funds online or via your debit card.
You may designate or change a beneficiary online. Log into your account and click “My Profile,” then click “Beneficiaries” under “My Profile Settings.” From there, click “Add A Beneficiary,” enter your beneficiary’s information, and click “Save.”
If you live in a common law or in a community property or marital property state and wish to designate someone other than your spouse as your primary beneficiary, see “Am I required to list my spouse as the beneficiary if I am married?” for more information.
We recommend naming both a primary and contingent beneficiary.
You can name more than one person as your primary beneficiary and more than one person as your contingent beneficiary. If you name more than one person, indicate the specific whole-number percentage of your balance to be paid to each beneficiary.
You should review and update your beneficiary designations periodically, particularly when you experience a major life event, such as a birth, marriage, divorce or death in the family.
If you are married in a community property or marital property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), you must designate your spouse as your primary beneficiary. If you wish to designate someone other than your spouse, contact us at support@HealthSavings.com or (888) 354-0697.
Otherwise, you may choose whomever you want to be the beneficiary of your HSA; however, only spousal beneficiaries are able to preserve the tax advantages upon a spouse’s death.
If designated as beneficiary of your HSA, your spouse will not be responsible for taxes on distributions for qualified medical expenses upon inheriting the account.
As beneficiary, your spouse becomes owner of your HSA, allowing him or her to:
If you fail to designate a beneficiary, or are married and name someone other than your spouse as beneficiary, the account ceases to be an HSA upon your death. As a result, the fair market value of the account becomes taxable in the year of your death for non-spousal beneficiaries.
If you chose to receive a debit card, your card will arrive in the mail within 5 to 7 business days of opening your account. For your security, the card will come in a nondescript envelope from Richmond, VA. Please watch your mail carefully.
Simply dial (855) 284-0673 from your home phone (must match the home phone number on file) and follow the prompts.
You will select a personal identification number (PIN) during debit card activation. Primary account holders and their authorized signer(s) share the same PIN. You can change the PIN by calling (855) 284-0673 from your home phone.
To get a debit card for yourself, call us at (888) 354-0697 and we’ll get one out to you immediately. To get debit card(s) for your authorized signer(s), log in to your account, click on “My Profile,” then click “Authorized Signers” under “My Profile Settings.” Click “Edit” for the authorized signer you’d like to have a debit card, check “Yes, I would like a card for my authorized signer,” then click “Save.” Debit cards for the account holder and first authorized signer are free, but debit card(s) for additional authorized signer(s) are $6/each.
Your debit card is accepted at ATMs and by medical providers who accept Visa (e.g., doctors’ offices, pharmacies, medical supply stores, etc.).
To safeguard against improper or accidental use, debit cards are restricted to merchants that provide medical products and services. If you need to make a purchase from a non-medical merchant for an eligible medical expense, you may purchase the product or service out-of-pocket and reimburse yourself later from your HSA.
After you receive a bill for a qualified medical expense, fill in your debit card number on the payment form and return your payment to the address noted on the bill.
Yes. For your security, there is a daily limit of $2,500 for point-of-sale purchases and $500 at ATMs. If you need to pay a larger medical expense, contact us to request a temporary limit increase.
Remember, funds are deducted from your cash account, so you must have sufficient funds in your cash account to cover the expense(s).
You have options! You can pay part of the expense from your HSA and the remaining portion using another payment method. You can also pay the entire expense using another payment method and reimburse yourself later from your HSA. Or ask the medical provider to set up a payment plan.
Yes, it’s possible to overdraw your cash/debit account and incur fees if your HSA does not have sufficient funds to cover the transaction when processed. To avoid fees, we strongly encourage you to monitor your account balance and debit card purchases.
If you use your debit card for a non-qualified medical expense, you must report the expense on your income taxes and are subject to income tax and a 20% penalty. To prevent this, contact us for a Distribution Reversal Form before filing your taxes on April 15.
Contact us immediately at (888) 354-0697.
On average, Medicare covers about 59% of healthcare costs, leaving you to cover the remaining 41% from your retirement savings. Studies indicate that the average couple retiring at 65 years old today will need up to $404,000 to cover these expenses. So, you can see why it’s important now, more than ever, to efficiently save for these future expenses. Find out how an investment HSA can help.
No. You can invest in as many funds as you would like.
You may make investment changes online.
If you have a debit card, you will receive monthly statements. If you only have investments in your account, you will receive quarterly statements.
All monthly statements are issued electronically; quarterly statements can either be issued on paper or electronically. If you are a debit card holder, your quarterly statements will be issued either on paper or electronically, but your monthly statements will only be issued electronically.
To change how your quarterly statements are issued, log in to your account and click “My Profile,” then scroll to “Contact Information” and click “Edit.” At the bottom of that section, you can check a checkbox to receive your statements electronically or leave it unchecked to receive paper statements.
Even if you are self-employed or not contributing through your employer, your contributions are still shown in the “Employee” line item on page 1 of your statement.
Transfers and rollovers are shown in the “Roll/Exch/Xfer” line item on page 1 of your statement.
The “Earnings” line item on page 1 of your statement shows any dividends gained from your investments, as well as any interest gained from your cash/debit card account.
The “Investment Results” line item on page 1 of your statement shows any capital gains or losses from your investments for that time period.
The “Fees” line item on page 1 of your statement refers to all fees charged to your account for that time period.
Your fees are also broken out in your Form 5498-SA. To view or download this form, log in to your account and click “Statements & Documents” on the top navigation. Then, click “Private” under “Document Type” to see your Form 5498-SA. Form 5498-SA lists the contributions to your HSA in the previous tax year, so if you didn’t make any contributions in the past year, you won’t see a form.
On page 2 of your statement, the “Your Portfolio Allocation” section displays your current investment elections and savings allocations. Your current savings allocations shown how you have allocated your funds until now, while your current investment elections show how you are allocating your funds moving forward.
Here’s an example of why your investment elections and savings allocations might be different: When you opened your HSA, you could have put all of your money into your cash account to pay for current medical expenses. However, a week ago you realized the importance of investing your funds and changed your elections to 75% investments and only 25% cash.
When you get your statement, your current investment elections will be 75% investment and 25% cash. However, your current savings allocations will be heavily weighted towards your cash account, since that’s where all your funds had been going until a week ago.
On page 3 of your statement, there’s a section called “Your Activity” that shows contributions to your investment funds. Your contributions will be listed as “pre-tax” or “after-tax.”
The “employee pre-tax” and “account holder after tax” appears because we are currently sharing this platform with Employers and other retirement entities. For HSA account holders, the wording is purely cosmetic; it has no relevance to contributions, distributions or any activity on the HSA and tax forms are not affected. Basically, you shouldn’t pay any attention to seeing “pre-tax” or “after-tax” here.
Debit card transactions are listed in the “Debit Activity” section of your statement, which is either on page 3 or 4 of your statement (depending on how much investment activity you have).