What is an HSA?
Simply put, a health savings account (HSA) is a tax-exempt account established for the purpose of paying or reimbursing qualified medical expenses for an individual, spouse or family. To be eligible to open an HSA, an individual must first be in a HSA-qualified high deductible health plan (HDHP). High Deductible plan is a $500 or higher, annul deduction per person.
An HSA provides triple tax savings. Funds are deposited on a pre-tax or tax-deductible basis, earnings grow tax free and withdrawals for qualified medical expenses are tax free.
HSA funds roll over from year-to-year, and can be used or saved depending on your financial needs.
In short, an HSA is like a 401(k) or IRA for medical expenses, only better because withdrawals for qualified expenses are tax free, before retirement age.
Benefits of an HSA
More Benefits of an HSA
Keep Your Savings
The money in your HSA rolls over year after year (it’s not use-it-or-lose-it like a flexible spending account).
Grow Your Savings
You can invest your HSA funds and let them grow long-term like an IRA or 401(k).
Pay for Your Family
You can use your HSA funds to pay for your spouse or tax dependents’ qualified medical expenses tax-free, even if they’re on different health plans or ineligible for HSAs. Qualified medical expenses include doctor’s visits, prescriptions, dental bills, and more.
Take Funds With You
Because HSAs are individually-owned, they stay with you when you change jobs or retire. And even if you become ineligible to contribute to your HSA, you can continue to pay for qualified medical expenses tax-free from the funds currently in your account.
Open an HSA through your employer or direct with us, SocialHSA.net
Accounts: $75 per year
Administrative Fee: 1/4 of one percent; 0.25% added to the mutual fund expense ratio.
Institutional Shares on ESG funds offered. Minimums waived.
Example: Calvert Balanced Fund A share expense ratio: 0.94% Institutional Share: 0.62%
As with all accounts you can access funds online, mail or fax and via debit card.
To withdraw funds via your debit card, simply visit any ATM. For your security, there’s a $500 daily limit on ATM withdrawals. Funds are deducted from your cash account. Please note that your debit card cannot access your investment account; however, you can move funds between your investment account and cash account online.
Ready to enroll?
A health savings account (HSA) combines the immediate benefits of a flexible spending account with the retirement strategy of a 401(k) … and offers more tax advantages than either.