1. Health Savings Accounts

2. What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged savings option that allows participants to pay for qualified health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. HSA funds also can be used to pay for non-health expenses on a taxable basis. HSA funds accumulate over time with interest and are tax-free. Account holders own any funds in the account immediately.
Moving onto slide 5 now.
So what are HSAs?
For starters, a Health Savings Account is a tax-advantaged account that must be paired with a high deductible health insurance plan. At the federal level, HSAs have 3 tax advantages: contributions are tax-free or can be made on a pre-tax basis, distributions for eligible medical expenses are tax-free, and interest earned is also tax-free.
The easiest way to think of an HSA is as a “medical IRA.” Funds can be spent on medical expenses, or left to roll from year to year and serve as an investment. Unlike a flexible spending account, the funds belong to the accountholder, are portable from job-to-job, and are not subject to any use-it-or-lose-it provisions. 1

3. Who is eligible? People who are
Enrolled in an HSA-compatible health plan which is High Premium High Deductible (HPHD)
Enrolled in health insurance other than an HSA-compatible health plan
Enrolled in Medicare or Tri-care
Eligible to be claimed as a dependent on someone else’s tax return 2 2

4. How much can I contribute?
Annual Limits vary from year to year. The current limit for 2018 is $6,150 for a family and $3,050 for an individual.
There is also a catch up contribution amount of $1000 for individuals over age 55 in addition to the above amount.
How can I contribute?
HSA contributions may be made fro the following sources:
Pre-tax payroll deductions
Employer contributions
Individual contributions
IRA transfer
Transfer/rollover from another HSA 3 3

5. HSA-qualified medical expenses
Most out-of-pocket healthcare expenses can be paid with an HSA
Contact lenses
including saline solution and cleaner
Dental treatment
x-rays, fillings, extractions, etc.
Medicines or drugs
including OTC medicines 4 4

6. Triple tax savings* Increase your spending and savings power
Pay for qualified medical expenses tax free
Interest and investment earnings are tax free
Contributions are pre-tax or tax deductible
* All taxes are at the federal level. State taxes vary.
Please consult a tax advisor. 5 5

7. You are in charge HSA flexibility
FDIC-insured, interest-bearing deposit account
Choose how to invest in mutual funds after achieving a minimum deposit account balance
One place to manage both your deposit account and investment funds
No investment transaction fees
INVESTMENT PRODUCTS: NOT FDIC INSURED ● NO BANK GUARANTEE ● MAY LOSE VALUE 6 6

8. For more information
To learn more about HSA legislation and IRS guidelines, go to and select “Health Savings Accounts (HSAs)”