HEALTH SAVINGS ACCOUNT (HSA)
BUNKHOUSE IS OFFERING A HEALTH SAVINGS ACCOUNT (HSA) WITH THE OPTION 1 MEDICAL PLAN. THIS IS HOW AN HSA WORKS:
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.
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.
Once your HSA is established, money is contributed to your account by you, Bunkhouse 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?
HSAs benefit everyone who is eligible to have this account – single individuals, families, and soon- to-be retirees. You save money on taxes in three ways:
Tax-free deposits The money you contribute to your HSA isn’t taxed (up to the IRS annual limit)
Tax-free earnings Your interest and any investment earnings grow tax-free
Tax-free withdrawals Money used toward eligible health care expenses isn’t taxed – now or in the future
Maximum HSA Contributions
Catch-up Contributions Individuals age 55 and older can make additional catch-up contributions in the amounts shown below:
2023 : $3,850; 2024 : $4,150
Single Coverage
2023 : $7,750; 2024 : $8,300
Family Coverage
2020 andafter
$1,000
Refer to your HSA documentation for more information.
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HSA I
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