Health Savings Account (HSA)
Health Savings Accounts (HSAs) combine a High Deductible Health Plan (HDHP) with a tax-exempt trust or custodial account to pay for qualified medical expenses. The HSA is an individual health account that is owned by the employee and may be used for the payment of medical expenses that are not covered by their HDHP, including expenses that go towards satisfying the deductible. Individuals or employers may contribute on a pre-tax or post-tax basis. Pre-tax funds used for eligible healthcare expenses are tax-free to the account holder.
An HSA is similar to an Individual Retirement Account (IRA) in that the participant owns it and directs the investments. Balances in the HSA continue to accumulate in the account. Funding options including pre-tax contributions via payroll deduction or post-tax contributions via check or electronic funds transfer.
- Any money left at the end of the year remains in your account and rolls over to the following calendar year.
- For employees age 55 and older, an additional $1,000 “catch-up” contribution is allowed
HEALTH SAVINGS ACCOUNT
Which plans is this account available for?
You must be enrolled in a High Deductible Health Plan in order to be considered eligible for this account.
TaxBit offers the following High Deductible Health Plan:
Aetna HDHP $2,000 Plan
Aetna HDHP $4,000 Plan
Do I need to be enrolled in a medical plan?
What would I use this account for?
To save for future health care expenses, but also to pay for eligible health care expenses, including medical, dental, vision and prescription medications — now.
What is the maximum amount that I can put into this account?
$4,150 Employee-only coverage
$8,300 Two-party or Family coverage
If you’ll be at least 55 years old in 2024, you can make an additional $1,000 catch-up contribution.
What does the company contribute?
HDHP $2,000 Plan:
Employee-only coverage: $500*
Two-party or Family coverage: $1,000*
HDHP $4,000 Plan:
Employee-only coverage: $1,000*
Two-party or Family coverage: $2,000*
Are there investment options?
Yes, if you have more than $2,000 in your HSA, you can invest it, and any growth is generally tax free.
When are the funds available?
Your contribution amount is available as it comes out of your paycheck each pay period — so your entire contribution amount is not available at the beginning of the year or when coverage starts.
What happens if I don’t use the money during the year?
All unused funds will roll over to the next year.
You can take HSA funds with you when you leave the company or retire.