A FINANCIAL WELLNESS HOME RUN
HEALTH SAVINGS ACCOUNT
wexinc.com | WEX benefits mobile app If you’re enrolled in the High Deductible Health Plan (HDHP), you may also be enrolled in a health savings account (HSA). Check out the ways to use your HSA. • Spend : You can use the HSA for its checking account qualities — access money that is in your account to cover qualified medical, dental and vision expenses. Bonus? You’re not using funds from your actual checking account, and you pay less in taxes on both your HSA contributions and your qualified expenses. • Save : You can use the HSA for its savings account qualities. Instead of using the funds now, your goal is to grow your HSA balance for the long haul, saving a financial nest egg for medical expenses in the future — including during retirement. Unlike a 401(k), you aren’t taxed on FICA or distributions on medical expenses, and there is no required minimum distribution, making an HSA an even more powerful retirement savings vehicle. The funds in the account roll over year-to-year and belong to you, even if you leave the company or retire. Free Money! When you enroll in the HDHP, Averitt will contribute $10 per week for individual coverage or $20 per week if you cover dependents. Adjust Your Contribution and Reduced Your Taxable Income You can adjust your HSA contribution at any time, so consider whether increasing your election is the right choice for you and your family. When you make your own pre-tax contributions through payroll deductions up to annual IRS household limits, you reduce your taxable income, meaning you’ll pay less in taxes next year when you file. For 2025, the maximums are $4,300 for individual and $8,550 for all other coverage, plus a $1,000 annual catch up contribution for those over age 55. The annual maximums include the Averitt contribution, so subtract the amount you will receive from Averitt to determine your maximum 2025 contribution amount.
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