"Learning about HSAs doesn’t have to be boring! When you watch an exciting and funny (and informative) HSA video with me and Captain Contributor, you’ll find out all sorts of great stuff about your healthcare benefits account."
Plus, after watching this HSA video, you’ll be able to answer questions like:
- Can the Captain stop out-of-control carnival rides?
- Why is Betty the Benefactress doing all the heavy lifting?
- With so many doomsday scenarios, is it time for these citizens to find a new place to live?
A Health Savings Account (HSA) allows employees enrolled in a high deductible health plan to set aside money before taxes to pay for out-of-pocket healthcare expenses. HSAs can be used by the employee and their dependents.
HSA Contribution Limits
Tax Benefits for Health Savings Accounts
HSAs offer people a “triple tax advantage”:
- Contributions are not taxed
- Withdrawals for eligible healthcare expenses are not taxes
- Interest earned and investment income is not taxed
A Health Savings Account can cover everyday healthcare expenses such as:
- Co-pays and deductibles
- Dental care, including routine exams, fillings, crowns, orthodontia and more
- Vision care, such eye exams and prescription eyewear, including contact lenses
- Emergency or urgent care
- First aid kits and supplies
With an HSA, you own the account and keep it forever. At the end of each year, all leftover money rolls over to the next year. Best of all, there is no “use it or lose it policy” with an HSA (like an FSA). This allows you to build up your account over time without fear of losing that money.
Retiring with a Health Savings Account
Once you reach age 65, you can use your Health Savings Account like a retirement account. You can use the money for any reason, without penalty. However, you will have to pay taxes on any money used for non-eligible expenses. If you use the HSA for eligible healthcare needs, you will not pay taxes on those withdrawals.
HSA Debit Card
If you have an HSA debit card, you can use it for eligible expenses at approved locations, like pharmacies and doctor’s offices. You can also shop online at places like HSAStore.com, Amazon, Walgreens, and more.