Important things to know about your Health Savings Account ...

Important things to know about your Health Savings Account (HSA)

A Health Savings Account (HSA) is a great way to pay for health care expenses now or, let the money grow tax-free and use it to pay for future eligible health care expenses, including those you'll experience in retirement. Here are additional ways to take advantage of your HSA:

Getting started

? UnitedHealth Group will help get your HSA started by contributing up to $500 for individual coverage or up to $1,000 for family coverage. That money will be divided evenly over 26 pay periods or pro-rated for new enrollees based on start date.

? W hen you enroll in benefits, you can choose to receive your Rally for Health incentive as an HSA contribution (up to $600 for you or up to $1,200 for you and your enrolled spouse or domestic partner).

? U nlike a Flexible Spending Account, an HSA does not have a "use it or lose it" rule. Your money rolls over from year-to-year and is yours to keep -- even if you leave the company. You can start, stop or change your contribution amount at any time.

HSA Now

HSA Now lets you get an advance on the company's HSA contribution ? up to $500 for individuals or $1,000 for families ? before it's deposited into your HSA.

HSA Now is a great way to help pay for an unexpected health care expense when you need help covering the cost, especially if that expense comes early in the year, when your HSA balance might be too low to cover the entire expense.

When HSA Now funds are advanced, they are then repaid with future bi-weekly company contributions.

Growing your HSA

? An HSA helps you save on taxes three ways: The money you contribute, withdraw and earn as interest or investment returns is all tax-free. Note: Withdrawals must be for qualified expenses.

? Once you've reached an investment threshold of $2,000, you can invest part of your HSA in mutual funds, allowing it to grow in value more quickly than money that's simply earning interest.* * D isclaimer: Investments in an HSA are not FDIC insured, are not guaranteed by Optum Bank, and may lose value. You should consult with your personal financial advisor before making an investment election.

Using your HSA

? You have three ways to pay for qualified health care expenses: using your HSA debit card, paying a provider directly from your HSA online via ? or paying the expense out of your own pocket and reimbursing yourself later from your HSA.

? There are more than 80+ qualified health care expenses you can pay for using your HSA. Some examples include braces, acupuncture, chiropractic services, deductibles, glasses, hearing aids, and certain over the counter drugs and medications. Check out the full list at and search under publication 502, Medical and Dental Expenses.

IRS rules/eligibility

? The IRS sets limits on how much money you can contribute to an HSA each year, so be sure you know the annual maximums. This amount includes contributions from you and your employer (including rewards such as Rally for Health). If you contribute more than this amount, the IRS will charge a penalty.

? HSA funds spent on non-eligible expenses are subject to income tax. That rule applies for anyone, any age. If you are younger than age 65, you could also face an additional IRS penalty of 20% for non-eligible purchases.

? You can use an HSA to pay qualified health care expenses for your dependents even if they aren't covered under your health plan, but they must be a tax dependent. In most cases, adult children and domestic partner expenses are not eligible.

Managing your HSA

Want to check your HSA balance? Or start, stop or change your HSA contributions at any time? Log on to the benefits enrollment site at benefitsenroll..

Investments in an HSA are not FDIC insured, are not guaranteed by Optum Bank and may lose value. Health savings accounts (HSAs) are individual accounts offered or administered by Optum Bank?, 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. Administrative services provided by United HealthCare Services, Inc. or their affiliates. ?2020 United HealthCare Services, Inc. (ES 20-1037)

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download