HEALTH SAVINGS ACCOUNT
Resources
What is a Health Savings Account (HSA)?
An HSA is a tax-sheltered bank account through Fidelity that you own to pay for eligible health care expenses for you and/or your eligible dependents for current or future healthcare expenses. The HSA is yours to keep, even if you change jobs or medical plans. There is no “use it or lose it” rule; your balance carries over year to year. Another important advantage is Oatey’s contribution to your HSA! Oatey contributes to your account in each new plan year.
Are you eligible to open a HSA?
Although everyone can enroll in the Qualified High Deductible Health Plan, not everyone is eligible to open and contribute to an HSA. To enroll, you must meet the following requirements:
- You must be enrolled in a Qualified High Deductible Health Plan (QHDHP).
- You must not be covered by another non-QHDHP health plan, such as a spouse’s PPO plan.
- You are not enrolled in Medicare.
- You are not in the TRICARE or TRICARE for Life military benefits program.
- You have not received Veterans Administration (VA) benefits within the past three months.
- You are not claimed as a dependent on another person’s tax return.
- You are not covered by a traditional health care flexible spending account (FSA). This includes your spouse’s FSA. (Enrollment in a limited purpose health care FSA is allowed).
Plus, you get extra tax advantages with an HSA because:
- Money you deposit into an HSA is exempt from federal income taxes.
- Interest in your account grows tax free.
- You don’t pay income taxes on withdrawals used to pay for eligible health expenses. (If you withdraw funds for non-eligible expenses, taxes and penalties apply).
- You also have a choice of investment options which earn competitive interest rates, so your unused funds grow over time.
How do you open an HSA Bank Account?
You can manage your HSA through Fidelity HSA. Access Fidelity HSA via communications.fidelity.com/wi/fidelity-hsa 24 hours a day, 7 days a week. Fidelity HSA provides helpful information about your HSA, including online calculators to help you add up your tax savings and see your HSA’s possible future growth. For additional guidelines, please go online or call Fidelity Investments at (800) 544-3716.
How do I get reimbursed for my eligible expenses?
The easiest way to use your HSA dollars is by using your HSA Debit Card at the time you incur an eligible expense, but keep your receipts! You must prove that you were reimbursing yourself for an eligible expense if you are audited by the IRS. If you use your HSA funds for non-eligible expenses, you will be charged a 20% penalty tax (if under age 65) as well as federal income taxes. To view the types of qualified medical expenses your HSA can cover, click here.
HSA Contributions
You can contribute to your Health Savings Account on a pre-tax basis through payroll deductions up to the IRS statutory maximums. The IRS has established the following maximum HSA contributions:
*If you are age 55 and over, you may contribute an extra $1,000 catch up contribution.
