Why have an HSA? An HSA simply helps you plan, save and pay for health care. You own it.
The money belongs to you, even deposits made by others, such as an employer or family member. You keep it, even if you change jobs or health plans. It has triple tax benefits.
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Money deposited is federal income tax-free. |
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Savings grow tax-free.. |
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Withdrawals made for qualified expenses are also income tax-free |
Tips for using your HSA
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You can use your HSA to pay for Health care services covered by your health plan, such as doctor visits and prescriptions. It can also be used to pay for many other qualified expenses that may not be covered by your plan, such as vision, dental and hearing expenses. |
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You can even use your savings to pay for other kinds of health insurance, such as COBRA, long-term care and any health plan coverage you have while receiving unemployment compensation. |
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When you turn 65, you can use HSA savings to pay for any tax deductible health insurance (except for Medicare supplemental insurance). |
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You can invest it. Once your balance reaches the investment threshold, you can begin investing in mutual funds. If you earn money on your investments, you don’t pay income tax on that money, either. You can save for the future. |
By saving in an HSA, you can be ready for expenses due to illness or accident. And, after you turn 65 or become entitled to Medicare benefits, you may withdraw money from your HSA for expenses that are not qualified medical expenses which are subject to standard income taxes, without penalty. Save as much as you can now, and you could possibly have a nest egg when you retire.
HSA FYI If I were to get audited by the IRS, is an EOB enough? No, that’s why keeping receipts of your Health Savings Account (HSA) spending is important as well as an IRS requirement. Essentially, any money that comes out of your HSA must have a receipt showing the payment was an eligible medical expense. The only exception is when a distribution is rolled over to another HSA and you must account for this on your tax return.
The IRS has not issued an official notice regarding record keeping with an HSA but here are some guidelines you should follow:
You must keep records sufficient to show that:
- The distributions were exclusively to pay or reimburse qualified medical expenses
- The qualified medical expenses had not been previously paid or reimbursed from another source, and
- The medical expenses had not been taken as an itemized deduction in any year.
Do not send these records with your tax return. Keep them with your tax records in the event of an IRS audit.
Be sure also that your receipt contains the following information: amount, payee’s name, transaction date and if a check, the check number. |
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Nutritional Choices for Halloween |
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Let the kids enjoy some of their Halloween candy when they get home from trick-or-treating (after you have inspected the treats for safety). |
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Throw the rest away. |
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If you don't want to throw the candy away, give it away. Take the rest of the candy to work or group meetings. |
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Divide up the leftover candy to be eaten a little at a time. |
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If you’re handing out treats for Halloween, consider bagged popcorn, raisins or a low fat sweet option like mini-marshmallows. |
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October is National Breast Cancer Awareness* Month.
When Breast Cancer is detected early, in the localized stage, the 5-year survival rate is 98%. Men are also at risk for breast cancer and should consider taking similar measures. Here are steps you can take for early prevention: |
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Women age 40 or older who are at average risk of breast cancer should have a mammogram once a year. |
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Women at high risk should have yearly mammograms along with an MRI starting at age 30. |
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Women and Men in their 20s or 30s should have a Clinical Breast Exam (CBE) about every three years as part of a general health exam. |
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Women over 40 should have a CBE once a year. |
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Breast self exam - It is a good idea to get in the habit of doing monthly self-exams starting at age 20. Examining yourself on a regular basis lets you become familiar with your breasts so you will notice any changes that may occur. |
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