Understanding Health Savings Accounts (HSAs)

Healthcare is constantly changing. With rising out-of-pocket expenses and larger gaps in coverage, you need a solution. A Health Savings Account (HSA) might be the answer. Paired with a High Deductible Health Plan (HDHP), an HSA offers the security of knowing you have the funds needed to help cover healthcare costs before you meet your deductible. Why a Health Savings Account? How It Works An HSA allows you to set aside money pre-tax to help pay for eligible medical expenses. Your contributions can build year over year and any interest you earn will grow tax-free. To participate in an HSA, you must first be enrolled in a qualified HDHP. You may be enrolled in the plan either through your employer or spouse’s plan. Combining a qualified HDHP with an HSA helps you control your healthcare costs and expenses. Potential for Growth The money you put into the account is deducted from your paycheck tax- free. The interest and earnings you make on the account grow tax-free, with the opportunity to invest in mutual funds. Triple-Tax Advantage An Account You Own Like a personal savings account, the money in an HSA rolls over annually, meaning the funds never expire and you can take it with you wherever you go – even if you change jobs, change health plans or retire. The Value of an HSA The money you put into the account is deducted from your paycheck tax-free.** When you take money out for eligible medical expenses, it is generally tax-free. The interest and earnings you make on the account grow tax-free, with the opportunity to invest in mutual funds.* *This is not a guarantee of future performances. Your investment is connected to the stock market and is subject to rise or fall. ** HSA contributions are not subject to federal and most states’ income tax. State income tax may apply in California and New Jersey. Please consult a tax advisor for your state’s specific rules. Health Savings Accounts Health Savings Accounts