. HEALTH SAVINGS ACCOUNT (H.S.A.)
Health Savings Account (HSA)
A Health Savings Account (HSA) is a special savings account that is paired with a high-deductible health plan (HDHP), also referred to as a “consumer - driven health plan”. This type of plan encourages participants to be wise healthcare consumers and utilize lower cost options wherever possible. HDHPs are designed to help you save money and pay for qualified medical expenses. This type of a plan is meant to have a cumulative effect on cost savings.
• Deposit money into your HSA via pre-tax payroll contributions
• Save on taxes by lowering your federal taxable income
• Use your HSA to pay for qualified medical expenses such as deductibles, copays and coinsurance
•
Invest your savings in mutual funds
How much can you contribute to your HSA in 2023
Annual catch-up contribution $1,000 if age 55 or older
Individual only $3,850
Individual + spouse, children, $7,750 or family
Reminders:
• Yearly contributions should be made by your tax filing deadline.
• Distributions from your HSA and contributions made for or during the previous year need to be
reported on IRS form 8889. This is important because it needs to match what is reported on the
1099-SA form.
• For catch-up, eligible spouses over 55 can only make catch-up contributions to his/her account
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