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Health Savings News September 2014 | Issue 5  
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Open Enrollment and Your HSA

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.

Money deposited is federal income tax-free.

Savings grow tax-free..

Withdrawals made for qualified expenses are also income tax-free

Tips for using your HSA

1.

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.

2.

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.

3.

When you turn 65, you can use HSA savings to pay for any tax deductible health insurance (except for Medicare supplemental insurance).

4.

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.

Take action
 

Nutritional Choices for Halloween

 

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).

Throw the rest away.

If you don't want to throw the candy away, give it away. Take the rest of the candy to work or group meetings.

Divide up the leftover candy to be eaten a little at a time.

If you’re handing out treats for Halloween, consider bagged popcorn, raisins or a low fat sweet option like mini-marshmallows.

 

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:

 

Women age 40 or older who are at average risk of breast cancer should have a mammogram once a year.

Women at high risk should have yearly mammograms along with an MRI starting at age 30.

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.

Women over 40 should have a CBE once a year.

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.

 

Investments are not FDIC insured, may lose value and are not guaranteed by Optum Bank

* www.cancercare.org, Early Detection and Breast Cancer: What every woman should know

These guidelines are based on the recommendations of the U.S. Preventive Services Task Force (USPSTF), U.S. Department of Health and Human Services and the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention. They are provided for informational purposes only, and do not constitute medical advice. Individuals with symptoms or at high risk for disease may need additional services or more frequent interventions. Discuss with your doctor how these guidelines may be right for you, and always consult your doctor before making any decisions about medical care. These guidelines do not necessarily reflect the vaccines, screenings or tests that will be covered by your benefit plan. Always refer to your plan documents for specific benefit coverage and limitations or call the toll-free member phone number on the back of your health plan ID card.

In order to make a contribution to your HSA, you must be enrolled in a qualifying high-deductible health plan and meet the other requirements defined by the IRS.

For 2014, you can contribute up to the IRS limits of $3,300 if you have self-only coverage or $6,550 if you have family coverage. Contribution limits are increased by $1,000 for eligible individuals age 55 or older. These limits include contributions from you, your employer, or others.

Health savings accounts (HSAs) are individual accounts offered by Optum BankSM, Member FDIC, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

The email address from which this communication was sent is not monitored for responses. If you require assistance, please contact our customer service center toll-free at 1-866-234-8913. Customer care professionals are available to assist you Monday through Friday, 8 a.m. to 8 p.m. Eastern Time. This email was sent by: Optum Bank, 2525 Lake Park Boulevard, Salt Lake City, UT 84120, USA.

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