Health Savings Account (HSA)
If you are enrolled in the HSA Plan, you can participate in a Health Savings Account (HSA) which helps you save money for qualified Health Care expenses by allowing you to save money on a pre-tax basis. At the end of the year, any money left in the account can be used the following year to pay for healthcare costs.
You must set up your Health Savings Account at Bank of America when enrolling in the HSA plan. However, you cannot open an HSA if you do not enroll in the HSA plan
The HSA is not for everyone. You’re eligible only if you are:
- Enrolled in the High Deductible Health Plan
- Not enrolled in other non-HDHP medical coverage, including Medicare, Medicaid, or Tricare.
- Not a tax dependent.
- Not enrolled in a healthcare Flexible Spending Account (FSA), unless it’s a “limited purpose” FSA for dental and vision expenses.
A Health Savings Account (HSA) is an easy way to pay for healthcare expenses that you have today and save for expenses you may have in the future.
How the High Deductible Health Plan with HSA works
Notice: If you enroll in the HSA Plan mid-year and plan on contributing to it, please be aware that you need to prorate your contributions to avoid a tax penalty. For example:
01
Tax-free. No federal tax on contributions, or state tax in most states. Withdrawals are also tax-free as long as they’re for eligible healthcare expenses.
02
No “use it or lose it.” Your balance rolls over from year to year. You own the account and can continue to use it even if you change medical plans or leave the company.
03
Use it now or later. Use your HSA for healthcare expenses you have today or save it to use in the future.
04
Boosts retirement savings. After you retire, you can use your HSA for healthcare expenses tax-free, or for regular living expenses, taxable but no penalties.
