Health Savings Account (HSA)

image

Health Savings Account—Inspira Financial

A Health Savings Account (HSA) is a bank account where you can set aside money to pay for expenses that your health plan does not cover. The money in your HSA is not considered income, so it is not subject to taxes.




How does an HSA work?

You can use the money in your HSA at any time to pay for eligible medical expenses with either your HSA issued debit card or as a reimbursement to yourself. What is a qualified HSA expense?

  • Deductibles and coinsurance for medical and dental
  • Prescriptions and some over‐the‐counter drugs
  • Vision care, including glasses and Lasik eye surgery
  • Smoking cessation treatment and prescriptions

 

Remember to keep your receipts, in case the IRS requests them. For a detailed list of qualifying medical expenses go to www.irs.gov or Visit inspirafinancial.com.

 

Save Money with an HSA

You can reduce your taxable income and increase your take‐home pay. Just enroll and you’ll start saving money on eligible health care expenses for you, your spouse and your tax dependents. Eligible expenses may include deductibles, copays, coinsurance and prescriptions. Plus, vision and dental care, too. With an HSA, you can contribute up to $4,150/ individual and $8,300/family (pretax) annually. If you are 55 or older, you can contribute an extra $1,000. These funds can earn interest and provide a few other benefits, too:

  • Your unused funds roll over from year to year.
  • Your HSA always stays with you. It isn’t tied to an employer, health plan or retirement.
  • If you have an HSA elsewhere, you can transfer the balance to your new one.

Plus, you’ll enjoy extra savings on eligible over‐the‐counter health care items through CVS Pharmacy® online. This gives you more purchasing power.

 

Are you eligible for an HSA?

You’re eligible once you’re enrolled in a qualified high‐deductible health plan, with a few exceptions. You may not have:

  • Medicare or TRICARE®
  • Other health coverage that pays out‐of‐pocket health care expenses before you meet your plan deductible
  • A general‐purpose health care flexible spending account or health reimbursement arrangement in the same year
  • Veterans Affairs medical benefits used in the last three months, unless the hospital care or medical services were for a service‐connected disability
  • Someone claim you as a dependent on their tax return

 

HSA Tips for you

Check IRS contribution limits and common eligible expense items on inspirafinancial.com. Save your itemized statements, detailed receipts and any Explanation of Benefits statements for your expense records. If you use your HSA for ineligible expenses, you’ll need to pay income taxes. Plus, a 20% penalty tax on that amount, unless you’re age 65 or older or disabled at the time.


Investing with your HSA

If you’re a Inspira Financial HSA member, you have the opportunity to grow your HSA balance. How? By investing in a variety of mutual funds. There aren’t many accounts where you can make tax‐free contributions and tax‐free withdrawals — all while enjoying tax‐free growth.* So start using your HSA to help maximize your ability to save for the future.

Once you have a minimum balance in your HSA (typically $1,000), you can open an investment account and start investing your HSA dollars. With an investment account, you can take advantage of the following benefits:

  • Access to a diversified group of mutual funds, each professionally managed by an investment advisor.
  • Investment choices that earn top Morningstar® star ratings with an average of 4+ stars out of 5. Morningstar is a leading investment research firm.
  • 401(k)‐like investment capabilities with no transaction fees for trading.
  • The ability to move money from investment account back to your HSA if you need those funds for health care.

 

Contributions

Lynden Incorporated and Participating Employers (the Company) will contribute $1,000 for employee coverage and $2,000 for family coverage, annually. This amount is pro‐rated for mid‐year hires. You can also add your own tax‐free contributions.

  Employer Maximum Contribution Employee Maximum Contribution Total
Employee Only $1,000 $3,150 $4,150
Employee & Family $2,000 $6,300 $8,300

 

Online Resources

 


Helpful Tools and Resources

 

 

 

 


Back