HEALTH SAVINGS ACCOUNT (HSA) A Health Savings Account (HSA) is a health care account and savings account in one. It is only available on the Core Plan. 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, the company, 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 are already paying for, like doctor’s office visits, prescription drugs, and much more. Best of all, you decide how and when to use your HSA dollars.
HIGHLIGHTS OF AN HSA
Your money can earn interest and you may choose from investment options
Contributions from payroll to the HSA are voluntary and made pre-tax
An individually owned bank account (you own it)
A Health Savings Account (HSA) allows you to reduce your taxable income and save for eligible healthcare expenses
The IRS limits the total annual amount you can deposit. For 2024- $4,150 for employee-only coverage or $8,300 for those covering dependents on the HDHP
Unused funds roll over from year to year, no use-it-or- lose-it
Refer to your HSA documentation for more information.
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SENDOSO BENEFITS GUIDE
HSA I
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