HSA HCFSA Eligibility Requirements Must have a qualified HDHP and no other disqualified health plan. No specific eligibility requirements. Availability of Funds Funds are available only as contributions are made. The full election amount is available up front at the beginning of the plan year. Changing Contribution Amounts You may change your contribution amount at any point during the year subject to plan provisions. Changes may only be adjusted at open enrollment or with a qualifying event, such as change in employment or family status. Rollover Any unused balance always rolls over into the next plan year. With a few exceptions, HCFSAs are “use or lose” and you forfeit any unused balance at the end of the plan year. Connection to Employer It’s your account. You can take it with you wherever you go. Generally, you’ll lose your HCFSA with a change in employment. Effect on Taxes Contributions may be taken out of your paycheck pre-tax. Growth and distributions for eligible expenses are tax-free. tax-free. Contributions are taken out of your paycheck pre-tax. Distributions are tax-free for eligible expenses. Differences in Healthcare FSAs and HSAs Healthcare FSAs and HSAs are both common types of reimbursement accounts. They both allow you to set aside money for medical expenses, while reducing your overall taxable income. There are significant differences between a Healthcare FSA and an HSA. Consider signing up for an HSA today to take control of your healthcare expenses. AF-1000-0624 **HSA contributions are not subject to federal and most states’ income tax. However, state income tax may apply in California and New Jersey. Please consult a tax advisor for your state’s specific rules. American Fidelity Assurance Company 800-662-1113 • americanfidelity.com Health Savings Accounts