Health Saving Accounts

Can I have both an HSA and FSA?

You can have both types of accounts, but only under certain circumstances. Generally, FSAs make you ineligible for an HSA. You should check with your financial adviser to determine if an HSA and/or FSA is the right fit for you.

What’s the difference between an HSA and an FSA?

The big difference between an HSA and a Flexible Spending Arrangement (FSA) is that HSA contributions not used by the end of the year are not lost. You can keep rolling the money forward in your account each year, even into retirement.

What are the tax benefits of an HSA?

HSAs typically allow for:
  • Pre-tax contributions, meaning they are deductible from your gross income when you file your federal taxes or you can have your contributions deducted from your paycheck prior to tax withholdings if your coverage is offered by your employer
  • Tax-free earnings and withdrawals for qualified expenses

What happens to the money in my HSA at the end of each calendar year?

Whatever amount you don’t spend stays in the account to be used for future medical expenses. It will roll over year after year. The funds can continue to earn interest for you.

What happens to my money if I cancel or lose my HSA-compatible healthcare coverage?

You own the money in your HSA, so any money deposited into your HSA will remain in your account and automatically roll over from one year to the next.

You may continue to use those funds for qualified medical expenses if you are no longer enrolled in an HSA-compatible health plan; however, you no longer will be able to make contributions to your account. If you regain an HSA-compatible health plan at a later date, you can resume making contributions to your HSA.

Can I use the money in my HSA right away?

Yes. You can use your HSA money for qualified medical expenses as soon as you have money in your HSA -- assuming you are enrolled in an HSA-compatible health plan.

How do I pay for services using the money in my HSA?

If your HSA financial institution has provided you with a checkbook or debit card, you can pay for care directly from the account. If your HSA does not offer these features, you can pay with your own money and reimburse yourself for the expense from the account later.

How do preventive care services work with my HSA-compatible plan? Are they free?

If you have not met your deductible, you may be responsible for paying 100 percent of your preventive care services. For some plans your preventive care may be covered 100 percent before your deductible. Check your Evidence of Coverage, Certificate of Insurance, or policy for specifics about your benefits.

Syndicate content