There are many benefits to opening and using a health savings account (HSA). Here are the top five reasons we think you should consider it.
You get a discount on your health care expenses.
When you use your HSA, it's like using a 25-35% coupon for your health care expenses.* That’s because HSA contributions are tax deductible. For example, let’s say you recently visited your dentist and received a bill for $400. When you pay with your HSA, you are saving between $100 and $140 dollars based on your tax rate.
*Based on a 25-35% combined payroll and income tax rate.
You get to keep the money in your HSA, no matter what.
When you, your employer or anyone else makes a deposit into your health savings account, it stays there forever. There is no "use it or lose it" rule, even if you move off the high-deductible health plan. It's a great way to save a pocket of money for retirement. Plus, any money you keep in your account will earn interest.
You can prepare for unexpected medical expenses.
You don't have to know in advance what kind of medical expenses you'll incur over the year to open or contribute to an HSA. You can put money into your HSA and use it for unexpected medical expenses that happen without warning. You can also pay for qualified medical expenses as they come up and use your HSA to reimburse yourself.
You can invest your HSA dollars.*
With an HSA, you have the ability to invest your savings in a variety of mutual fund offerings. The best part is, the money that you earn through investing is tax-free. You can use that money for future medical expenses, or even for retirement.
You can use your HSA for anyone in your family.
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 for the whole family.
*Investments are not FDIC-insured, are not guaranteed by Optum Bank or Questco Companies and may lose value.
The IRS sets guidelines for how much you can contribute to an HSA each year. Following are the limits for 2016 and 2017:
You have until the tax-filing deadline (generally April 15) of the following year to make allowable contributions. Catch-up contributions can be made any time during the year you turn 55.
If you're eligible for an HSA, you can open one on your own or through your Questco benefits representative.
|IRS guidelines||Individual coverage||Family coverage|
|Minimum annual deductible|
|Annual out-of-pocket maximum
The main requirement for opening an HSA is having a qualifying high-deductible health plan that meets IRS guidelines for the annual deductible and out-of-pocket maximum.
You can open and fund a health savings account (HSA) if you:
- Are covered by an HSA-qualified high-deductible health plan (HDHP) on the first day of a given month.
- Are not covered by any other non-HSA-eligible health plan (dental, vision, disability and some other types of additional coverage are permissible).
- Are not enrolled in Medicare, TRICARE or TRICARE for Life.
- Have not received Veterans Administration (VA) benefits within the past three months, except for preventive care. If you are a veteran with a disability rating from the VA, this exclusion does not apply.
- Are not eligible to be claimed as a dependent on someone else’s tax return.
- Do not have a health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
Checking Your HSA Account With Optum Bank
Automated information is available 24 hours a day.
Customer care professionals are available Monday through Friday, 8 a.m. to 10 p.m.; Saturday and Sunday, 9 a.m. to 5:30 p.m.; Eastern Time.
To register for an online account, visit Optum Bank Online Here
Ways To Make A Deposit
Contributing to your health savings account (HSA) is easy. Choose the deposit option that's the most convenient for you.
One of the easiest ways to grow your HSA is by having your contributions deducted from your paycheck. If your employer offers this option, you can have a set amount deposited (pre-tax) to your HSA from every paycheck.
How to get started?
Talk to your Questco Benefits Administrator for details.
Log in to your account to make a one-time or recurring contribution to your HSA from a checking or savings account.
How to get started?
Visit Optum Bank Online Here
Build your HSA balance by transferring or rolling over funds from an IRA or another HSA.*
Request an IRA distribution
You can make a one-time contribution from a traditional IRA or Roth IRA into your HSA. Contact your IRA administrator to request a distribution. Keep in mind that the amount of the contribution cannot be more than you are eligible to contribute to your HSA for the tax year. If your employer contributes to your HSA, make sure to take that into account.
Transfer funds from another HSA
If you have an HSA from another bank that you want to close, you can transfer the funds to your Optum Bank HSA. To do so, download, fill out and send the HSA Rollover/Transfer Request Form to the previous administrator. This and other account forms are available after you log in to your account.
* Distributions, rollovers and transfers are subject to IRS restrictions. Please contact your tax advisor for information.