A Health Savings Account (HSA) is a medical savings account that is available to you when you’re enrolled in a high-deductible health plan. They are funded by pre-tax dollars that are deposited into your account by you or your employer, usually through payroll deduction. Unlike Flexible Spending Accounts, HSAs are not “use-it-or-lose-it” accounts and your balance carries over each year.
What are the benefits of an HSA?
An HSA is yours.
- Funds in your HSA account stay with you, even if you change jobs.
- There is no “use-it-or-lose-it” policy.
- Funds that remain in the account continue to grow and accrue interest.
- There are a variety of investment options to choose from.
There are triple tax advantages.
- Save tax free. Contributions are pre-tax and reduce your taxable income.
- Grow funds tax-free. An HSA grows with you.
- Spend tax-free. Withdrawals you use for eligible expenses are tax-free.
You and your employer can deposit money into your HSA account, up to an annual per-person or family limit set by the IRS. Funds can be withdrawn at any time for qualifying medical expenses. To fully benefit from the tax savings and save for your future healthcare needs, you should consider contributing the maximum amount allowed each year.
HSAs are individual accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC) and administered by WEX Health, Inc.
Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.
The amount you save in taxes will vary depending on the amount you set aside in the account, your annual earnings, whether or not you pay Social Security taxes, the number of exemptions and deductions you claim on your tax return, your tax bracket and your state and local tax regulations. Check with your tax advisor for information on how your participation will affect your tax savings.
This page highlights some of the benefits of an HSA. If there is a discrepancy between this material and your plan documents, the plan documents will govern. WEX Health, Inc. reserves the right to amend or modify the services at any time.