Learn more about an HSA
An HSA allows you to save money for qualified medical expenses that you’re expecting, such as contact lenses or monthly prescriptions, as well as unexpected ones — for this year and the future.
The money is yours until you spend it — even deposits made by others — such as an employer or family member. You keep it, even if you change jobs, health plans or retire.
Unlike other accounts, an HSA is one of the only savings vehicles that allows you to put money in on a before-tax basis through payroll contribution, grow your savings tax-free (interest and investment earnings are not taxed), and take the money out income tax-free for qualified medical expenses.
Your HSA is also a smart long-term investment vehicle that can play an even greater role in your overall wealth and retirement strategy.
Once your HSA reaches the investment threshold, you may choose to invest a portion of your HSA dollars. Optum Financial makes investing easy and more accessible for you by offering two investment opportunities. Learn more about how to invest your HSA dollars.
Save money on taxes
An HSA is a triple tax-advantaged account that can help you pay for qualified medical expenses.
No “use it or lose it” rule
You get to keep the money in your HSA, no matter what, even if you change jobs or move off a qualifying high-deductible health plan.
It's a family affair
You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you’re only enrolled with single coverage.
Invest in your future
Once your HSA reaches a certain designated balance you may choose to invest a portion of your HSA dollars.
What is an HSA?
An HSA is designed to work with a qualifying high-deductible health plan (HDHP). The money goes in tax-free, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses.
You can carry over unused funds from year to year, and the account is yours to keep even if you change jobs, change health plans or retire.
Take charge of your healthcare spending. Save smart, it’s easy with a health savings account, or HSA.
An HSA is used to save for qualified medical expenses for you and your eligible dependents, both now and in the future. It works like a regular bank account.
However, an HSA has big tax benefits. In fact, in most cases there are three ways an HSA helps you keep your money in your pockets and out of Uncle Sam’s.
First, generally you won’t pay federal income tax on money you deposit into your account. Keep in mind the IRS sets limits on how much you can contribute each year.
Second, you won’t pay income tax on money you use for qualified medical expenses, that includes vision and dental expenses.
And third, your savings grow income tax free, helping you create a nice little nest egg for retirement.
More good news, with an HSA there’s no use it or lose it rule, that means the money in your account is yours to keep, even if you change jobs or health plans.
Who’s eligible for an HSA? The main requirement is that you’re covered under a qualifying high-deductible health plan or HDHP. Although there are additional requirements defined by the IRS.
So, don’t wait, if you don’t already have an HSA open one! If your HSA is already up and running, contribute to it.
Start taking charge of your health care savings and spending with a health savings account, an easy way to save smart.
Understanding how to connect your health and finances is more important than ever.
Our resource library brings together industry-leading education, tools and resources designed to help you make the most of your health accounts.
Tax time and an HSA
As the tax season approaches, you may be asking yourself what you, as an HSA holder, need to do differently when completing your tax forms. Use this checklist to help simplify what forms you may need to be aware of when filing your taxes.
Manage your HSA contributions
You have until the tax filing deadline (typically April 15) to make contributions to your HSA for the previous year. Certain states or areas of the country may have additional time due to local holidays or natural disaster extensions. Please seek additional information from the IRS or your tax advisor.
*Your FSA plan may exclude reimbursement for certain categories of items. Check your plan for specific coverage details.
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Health savings accounts (HSAs) are offered or administered by Optum Bank®, Member FDIC, or ConnectYourCare, LLC, each a subsidiary of Optum Financial. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. Flexible spending accounts/arrangements (FSAs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Adoption Reimbursement Plans, Tuitions Reimbursement Plans, Surrogacy Reimbursement Plans, Lifestyle Plans, COBRA Benefits, and all other account types are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, “Optum Financial”) and are subject to eligibility and restrictions. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions. Federal and state laws and regulations and the design of your plan are subject to change.
Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, member FINRA/SIPC. For details and disclosures visit betterment.com. Certain brokerage services are offered through TD Ameritrade, Inc., member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit www.tdameritrade.com. The Schwab Health Savings Brokerage Account is offered through Charles Schwab & Co., Inc., member FINRA/SIPC. For details and disclosures, visit schwab.com.
Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealers or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.
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