Health Savings Account
The benefit that helps you save & invest in your health care. A health savings account (HSA) is a savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. With an HSA, you save approximately 30%* on your eligible expenses, making a $1,000 expense cost you about $700. You get these savings because the contributions you make to your HSA are exempt from Federal, State, and FICA payroll taxes. *This tax example is a broad approximation of tax liability. Your specific savings depend on your tax bracket. Further, your contributions may be subject to state income tax in some states. You should consult a tax advisor for help with your own situation. Current IRS tax laws control all pre-tax payment and contribution matters and are subject to change.
NextSteps
HSA Options
HSAs offer flexibility and planning beyond what you get with other benefits. Spendyour HSAdollars when you need them, save your HSAdollars when you don’t have an immediate need, and invest some of your savings as your balance grows tosee your money groweven faster. Spend: Usefunds onatax-free basis topay for eligible purchases as they comeup. Save : Put funds away for future expenses. Take advantage ofa high- yieldHSA , which gives you the potentialofahigher interest rate Invest : Help support your financial wellness by investing funds for health emergencies orhealth costs incurred during retirement
1. Consider Your Interest Options At EBC, there are two interest options for your HSA—a traditional interest option or a high-yield interest option . When you first enroll in your HSA, your HSA cash balance will automatically start out with the traditional HSA interest option, but you have the ability to transition your HSAcashbalance toahigh-yield HSAoptionatany time. The high-yield HSAgivesyoutheopportunitytoearnhigherinterest onyourHSAfunds byhavingyour HSAheld ina non-FDIC-insured accountthat is backed by a highly rated insurance company,PacificLife.Youcanchangeyourinterestoptionpreference anytimethrough your online account. Learn more at www.ebcflex.com/highyieldhsa . 2. Learn More About Investing Once your HSA reaches a $1,000 cash balance, you can start investing your HSA funds. There arethree investment modelstochoosefrombasedonyourexpertise—Managed, Self-Directed, and Brokerage. Whether you’re new to investing and are looking for a guided experience or are a seasoned investor looking to research and trade stocks and ETFs,youwillhaveaninvestment modelthatbestfitsyourneeds. Ifyourinvestmentneeds ever change, you can switch your investment model at any time. You can also transfer funds between your HSA cash balance and investment balance at any time. 3. View Eligible Expenses Consider which eligible expenses you can use your HSA funds on to help inform your contributionamount. ForafulllistofeligibleHSAexpenses, visit www.ebcflex.com/eligibleexpenses . 4. Choose Your Contribution Amount After considering the eligible expenses, decide how much you would like to contribute to theHSA. For2026, youcanelecttocontributeuptothe establishedlimit: Self-Only Health Plan | $4,400 Family Health Plan | $8,750 5. Complete the Enrollment Process After determining that an HSA is right for you, if you are eligible for an HSA, and determiningyourelectionamount,youshouldnowhaveabetterunderstanding ofyour available options and be prepared to complete the enrollment process.
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ContactUs
www.ebcflex.com (800) 346-2126 participantservices@ebcflex.com |
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