HEALTH SAVINGS ACCOUNT (HSA)
A health savings account (HSA) is a health care account and savings account in one. The main purpose of this account is to offset the cost of a qualifying high deductible health plan (HDHP) and provide savings for your out-of-pocket eligible health care expenses – those you and your tax dependents may have now, in the future, and during your retirement. BY ENROLLING IN THE HDHP MEDICAL PLAN, YOU COULD BE ELIGIBLE TO SAVE MONEY ON A PRE-TAX BASIS BY CONTRIBUTING TO A HEALTH SAVINGS ACCOUNT TO PAY FOR FUTURE MEDICAL EXPENSES This is a “portable” account. You own your HSA! It’s included in your employee benefits package, but after you set up your account, it’s yours to keep, even if you change jobs or retire. Funds roll over year to year and accumulate over time. Once your HSA is established with WEX, money is contributed to your account by you, Campbell & Co. or friends and family, and you can then use your HSA dollars tax-free to pay for eligible health care expenses. You save money on expenses you’re already paying for, like doctors’ office visits, prescription drugs, and much more. Best of all, you decide how and when to use your HSA dollars.
WHY IS IT A GOOD IDEA TO HAVE AN HSA?
Tax-free earnings Your interest and any investment earnings grow tax-free
Tax-free deposits The money you contribute to your HSA isn’t taxed (up to the IRS annual limit)
Tax-free withdrawals Money used toward eligible health care expenses isn’t taxed – now or in the future
Setting aside pre-tax dollars into your HSA you pay fewer taxes and increase your take- home pay by your tax savings. You save money on eligible expenses that you are paying for out of your pocket. The amount you save depends on your tax bracket. For example, if you are in the 30 percent tax bracket, you can save $30 on every $100 spent on eligible health care expenses.
2024 IRS Maximum Contribution Limits for HSA
Employee Only Enrollment
$4,150
Family Enrollment
$8,300
Employees Age 55 and up
$1,000 additional “catch - up” contribution
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PRIVATE PREP BENEFITS GUIDE
HSA I
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