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Health Savings Account

Health Savings Account.

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Health Savings Account

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  1. HealthSavings Account This presentation and the information included herein are the property of the American Fidelity Health Services Administration (AFHSA) and may not be copied, shared or distributed without express permission of AFHSA. Neither AFHSA nor American Fidelity Assurance Company are providing tax advice. Individuals with an interest in HSAs should contact their tax advisor. ESB-727(State of OK)-0814 3124

  2. What is an HSA? • HSA = Health Savings Account. • An HSA is an individually owned savings account that is tax-advantaged. As the account owner, you own itand any money contributed to your HSA is yours to keep. • Additionally, an HSA may be used to pay for your own qualified medical expenses, as well as your spouse’s and your tax-dependent children’s qualified medical expenses. Health Savings Account ESB-727(State of OK)-0814

  3. Portability. No matter where you go, your account will follow you. Even if you change jobs, change medical coverage, become unemployed, move to another state, or change your marital status, your HSA goes with you! • Flexibility. You decide when and where to use your funds. Funds may be used tax-free on a broad range of qualified medical expenses. • No Use-it or Lose-It. Funds may also be rolled over each year. So you may use them now or later -- even into retirement. There is no limit to amount you may accumulate in your HSA. • Tax Savings. Did you know that an HSA provides three-tiered tax savings to you? Not only may you make tax-free contributions, distributions for eligible medical expenses are tax-free and any interest earned is tax-free. What are the Advantages of an HSA? Health Savings Account ESB-727(State of OK)-0814

  4. You may use your HSA funds to pay for qualified medical expenses tax free for yourself, your spouse* and your tax-dependent children* • Examples of qualified medical expenses: • Deductible • Coinsurance/Copays • Dental Expenses • Vision Expenses • Over-the-counter medication if “prescribed” by a doctor TAX FREE What are Qualified Distributions? Qualified Distributions HSA *Your spouse and tax-dependent children do not need to be on your qualified high deductible health plan. ESB-727(State of OK)-0814

  5. Using HSA funds to pay premiums for other insurance coverage is not considered a tax-free qualified medical expense except for premiums paid for: • Long Term Care (portion of) • Health plan coverage while receiving federal or state unemployment benefits • COBRA continuation coverage • Medicare if you are 65 or older (but not Medicare supplemental policies such as Medigap.) TAX FREE What are Qualified Distributions? Qualified Distributions HSA ESB-727(State of OK)-0814

  6. Like any other checking or savings account, funds may only be used after they are deposited into your HSA. • Even if you have not saved enough in your HSA to pay for an expense, you may take a distribution to pay for the expense once you have accumulated additional funds. • There is no deadline on when you may take a distribution for an expense. • There is no requirement to use your HSA funds for all your qualified medical expenses. TAX FREE How Does an HSA Work? Qualified Distributions HSA ESB-727(State of OK)-0814

  7. You may contribute up to the maximum amount established by law for a given tax year, depending upon the number of months you are HSA eligible. These are the 2014 and 2015 annual limits. How Much May You Contribute? HSA Maximums are set annually by the U.S. Treasury Department. Contributions If you are 55 or older, you may contribute up to an additional $1,000! ESB-727(State of OK)-0814

  8. HSA eligibility is determined the first of each month and you must meet the following requirements in order to contribute to an HSA for that month: Who Is Eligible For An HSA? • You must be enrolled in a “qualified” high deductible health plan. • You may not be enrolled in Medicare. • You may not be claimed as a tax dependent on anyone else’s tax return. • You may not have any other health coverage that pays first-dollar expenses below the deductible, including a general purpose health flexible spending account (FSA) or health reimbursement arrangement (HRA). (That includes your spouse’s FSA and/or HRA.) ESB-727(State of OK)-0814

  9. The preceding slides are meant to give you an overview of an HSA and do not represent all the rules and requirements that may or may not affect your situation. For more details about HSAs, please visit our website: www.afhsa.com.In addition, you may also find HSA information at www.irs.gov. Please contact one of our HSA Specialists should you have questions or need clarification.Phone: 1-866-326-3600 (toll free) or 405-523-5699Email: HSA-Support@americanfidelity.com Thank You This presentation and the information included herein are the property of the American Fidelity Health Services Administration (AFHSA) and may not be copied, shared or distributed without express permission of AFHSA. Neither AFHSA nor American Fidelity Assurance Company are providing tax advice. Individuals with an interest in HSAs should contact their tax advisor. ESB-727(State of OK)-0814

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