The Schwab Health Savings Brokerage Account is offered through Charles Schwab & Co., Inc., Member FINRA/SIPC. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, Member FINRA/SIPC. Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Federal and state laws and regulations are subject to change. This communication is not intended as legal or tax advice. Heath savings accounts (HSAs) are individual accounts offered or administered by Optum Bank, Member FDIC, and are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. Start taking charge of your healthcare savings and spending with an OptumBank Health Savings Account, an easy way to save smart. If your HSA is already up and running, contribute to it. So, don’t wait, if you don’t already have an HSA open one! (Additional Requirements included: Not enrolled in Medicare, not covered by any other health plan that…, covered under an IRS qualifying HDHP, may not be claimed as a dependent on another) The main requirement is that you’re covered under a qualifying high deductible health plan or HDHP.Īlthough there are additional requirements defined by the IRS. …that means the money in your account is yours to keep, even if you change jobs or health plans. (Graphic of ‘Use it or Lose it’ text breaking in half creating a tearing sound) More good news, with an HSA there’s no use it or lose it rule, Second, you won’t pay income tax on money you use for qualified medical expenses, that includes vision and dental expenses.Īnd third, your savings grow income tax free, helping you create a nice little nest egg for retirement. Keep in mind the IRS sets limits on how much you can contribute each year.
In fact, in most cases there are three ways an HSA helps you keep your money in your pockets and out of Uncle Sam’s.įirst, generally you won’t pay federal income tax on money you deposit into your account. Save smart, it’s easy with an OPTUMBank® Health Savings Account or HSA.Īn HSA is used to save for qualified medical expenses for you and your eligible dependents, both now and in the future. As you're planning for the future, your HSA can ease your mind and prepare you for retirement by saving money income tax-free. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies. After turning 65 you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation. Start planning for retirementĪn HSA is a great tool to help you prepare for future health care costs and retirement. Unlike a 401(k) when you use HSA funds for qualified medical expenses - it’s always 100% income tax-free. In addition to contributing to your 401(k) you can also invest your HSA dollars to help grow your balance. This is a great way to plan for unexpected medical expenses, from your deductible to an ER visit, for the whole family. You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. When you, your employer or anyone else makes a contribution to your HSA, it stays there so you can use it when you need it. You get to keep the money in your HSA, no matter what, even if you change jobs or move off a qualifying high-deductible health plan.
You know you're going to need it - so why not save on taxes, too? There is no "use it or lose it" rule
The money you contribute to your HSA goes in, grows and comes out income-tax free when used for qualified medical expenses.