Health Savings Account (HSA)
An HSA is like a flex account, but better. You never have to worry about forfeiting HSA money you don’ spend - it carries over year-to-year and employer-to-employer. Money goes in tax-and-FICA-free, grows tax-free, and can be used for eligible expenses tax-free. Your employer may help fund your HSA account.
Use it to save for retirement and make penalty-free withdrawals after age 65. Contribute to your HSA with pre-tax money just like a 401(k), but, unlike a 401(k), your HSA contributions are exempt from FICA.
To be eligible for a health savings account (HSA), the following things must apply:
- You must enroll in an HSA-eligible medical plan, such as the STAR HSA Plan
- You’re not covered by a general-purpose flex account (FSA) or HRA or the balance is $0 before you open an HSA
- You’re not covered by another health plan (unless it’s another HSA-qualified plan)
- You’re not covered by Medicare or TRICARE
- You’re not a dependent of another taxpayer
Health Equity administers your HSA account. Health Equity will issue you a VISA card to pay for eligible expenses or you can submit your receipt to them and be reimbursed from your HSA account.
For more information about HSAs call 801-366-7503 or 800-753-7703