Mythbusters: Dispelling common HSA myths

Jun 29, 2023

American workers today are potentially facing challenges in retirement, due in part to the ever-increasing costs of health care. Health Savings Accounts (HSAs) are well-positioned to help as they can be used to pay for eligible medical expenses today and into retirement, but more education is needed.

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Text representation of infographic (for screen reader accessibility):

1. Myth: Owners forfeit unused balances at the end of each year.

Fact: Balances are never forfeited and can be used for eligible expenses at any point in the future, as long as there are funds in the account.

Fifty-percent of HSA account holders know that they can carry over balances from year to year.1

2. Myth: Owners lose their accounts when they leave employment.

Fact: Health Savings Accounts are personal accounts and they're portable through job changes and into retirement.*

Fifty-percent of employees know HSAs are portable.1

3. Myth: Contribution levels are fixed.

Fact: Account owners can change their pre-tax payroll deduction amount as often as their employer allows throughout the year.**

Only 29% of employees know contribution levels can be changed outside of open enrollment.1

4. Myth: Employees can only make contributions to an HSA through payroll deduction.

Fact: Account holders can deposit funds into their HSA via a transfer from their bank account through the online portal, payroll deduction or even personal check.

Only 37% of employees know contributions can be made through multiple methods.1

5. Myth: Employees who don’t open their accounts during open enrollment have to wait until the following year.

Fact: Account owners can open and fund their HSAs as soon as they meet eligibility requirements.

Only 22% of employees know they can open an HSA at any time.1

6. Myth: HSA investment options are limited.

Fact: HSA account owners may have access to a robust investment menu, depending on the program.***

Only 34% of employees know HSAs offer robust investment options.1

 

 

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* Note that while funds are available for use, you can no longer contribute to your HSA once you're enrolled in Medicare.
** Annual IRS contribution maximum applies.
*** As with any investment, there are risks; make sure to fully explore those risks before choosing to invest your balance.
1 Based on results of a Voya Financial Consumer Insights & Research survey conducted with Morning Consult between March 9-15, 2023 among n=500 working Americans age 18+ who have both an employer-sponsored retirement plan and a medical/health plan, featuring n=188 health savings account owners.

Health Savings Accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by Voya Institutional Trust Company.

This highlights some of the benefits of a Health Savings Account. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and WEX Health, Inc. reserve the right to amend or modify the services at any time.

The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will affect tax savings. None of the information provided should be considered tax or legal advice.

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.

Any insurance products, annuities and funding agreements that you may have purchased are sold as securities and are issued by Voya Retirement Insurance and Annuity Company (“VRIAC”). Fixed annuities are issued by VRIAC. VRIAC is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC (“VIPS”). Neither VRIAC nor VIPS engage in the sale or solicitation of securities. If custodial or trust agreements are part of this arrangement, they may be provided by Voya Institutional Trust Company. All companies are members of the Voya family of companies. Securities distributed by Voya Financial Partners, LLC (member SIPC) or other broker-dealers with which it has a selling agreement. All products or services may not be available in all states.

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.

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