Win a $100 Gift Card!
While learning how to save money, why not make some too? Review the information included in this presentation and complete the short quiz at the end for your chance to win a gift card!
Medical, dental, vision and dependent care expenses can add up!
This is why the IRS allows individuals to contribute funds to Health Savings Accounts and Flexible Spending Accounts PRE-TAX to help pay for these expenses.
There are rules set forth by the IRS that guide when an employer can offer these accounts and how much employees can contribute. Learn more ahead!
Must be enrolled in a Quali ed High Deducible Health Plan to be eligible
Health Savings Accounts are with a banking institution; sometimes your employer chooses the bank and sometimes you choose the bank.
Must use the funds on quali ed medical expenses for you and your tax dependents only
There are eligibility requirements and circumstances that could make you ineligible.
There are annual maximum contribution limits based on who you cover on your plan and your age.
You are responsible for using the funds appropriately and for saving your receipts.
1 Funds Rollover From Year to Year
There is no limit to how much you can save. Funds rollover and are not "use it or lose it."
2 Contributions are Flexible
You are not locked into a contribution amount during the year. If your health or nancial circumstances change, you can increase or decrease your contribution amount...just stay within the IRS maximum!
More Bene ts at Age 65
3
After you turn 65, you can continue to use your HSA for quali ed medical expenses or you can use the funds for nonquali ed expenses. If you use the funds for non-medical needs, you will be taxed, but you will not be penalized.
For employees enrolled in a nonquali ed high deductible plan or for those that waive coverage
Employers partner with Third Party Administrators to give you access to pre-tax funds via debit card or claim reimbursement.
Must use the funds on quali ed medical expenses for you and your tax dependents only
The money is generally "use it or lose it," meaning it must be spent within the plan year.
If this plan is available to you, ask your employer for a copy of the Summary Plan Description to understand all the rules.
There are annual maximum contribution limits.
You must verify expenses as quali ed using a smart debit card or by submitting paperwork to the Third Party Administrator.
The full balance of your annual election is available to you to spend on quali ed expenses on the rst day of the plan, even though you have not contributed the full balance yet. Note: this is also why you are generally unable to make mid-year contribution changes.
You can use the funds on quali ed medical, dental and vision expenses for any quali ed tax dependent.
For those enrolled in an HDHP and contributing to an HSA, a Limited FSA (reimburses dental & vision expenses only) may be available.
The second type of FSA is a dependent care FSA. This allows you to use pre-tax funds to pay for the care of a dependent under age 13, day care center or before or after school programs. Care for a disabled spouse, parent or child over the age of 12 is also eligible for reimbursement.
Must be enrolled in a Quali ed High Deducible Health Plan to be eligible
You do not have to be enrolled in a quali ed High Deductible plan to participate
Funds must be in the account in order to spend them
Money rolls over year to year
You can change your contributions at any time
Your full contribution is available to spend on the rst day of the plan
Generally, contributions are "use it or lose it" and must be spent within the plan year
You are only able to change your contribution in limited circumstances
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