HSA

HEALTH SAVINGS ACCOUNT

A Health Savings Account (HSA) requires the employee to be covered under a Qualified High Deductible Health Plan (QHDHP). The employee and/or employer contribute funds to the HSA on a pre-tax basis. Funds can be used to pay for eligible medical expenses not covered under other insurance. Withdrawals for non-eligible expenses are taxed at a 20% penalty and included in income. After age 65, withdrawals can be made for non-medical purposes and the owner pays only income taxes – making it an alternative for retirement planning. The funds belong solely to the employee and never revert back to the employer.

Through payroll deductions both the employer and employee save FICA taxes of 7.65% of the contributions. The employee reduces his or her federal income tax liability and in most cases state income tax liability.

ELIGIBLE EXPENSES

With a Health Savings Account, funds can be used to pay for eligible medical expenses not covered under other insurance. Eligible expenses include:

  • Doctor’s office visits

  • Medical deductibles and co-insurance

  • Approved prescriptions and over-the-counter items

  • Vision and dental costs

  • Chiropractic service

We are proud to partner with WealthCare Saver, https://www.wealthcaresaver.com and HSA Bank, https://www.hsabank.com for HSA deposits.

WEALTHCARE SAVER



Employees are issued a debit card that can be used at the medical, dental, vision, and pharmacy point-of-sale. Balances earn interest based on the daily balance according to the following as of January 2023*:

< $2,000.00                 .05% or High-Yield .15%

$2,000.00 - $9,999.99       .10% or High-Yield .30%

$10,000.00 - $24,999.99       .20% or High-Yield .60%

$25,000.00 + .40% or High-Yield 1.00%

*Illustration only see rates and fees here https://www.wealthcaresaver.com/disclosures/wcsp

Participants also have the option of using investment services. Participants who use the brokerage option are charged applicable transaction fees.     

HSA BANK



Participants are issued a debit card that can be used at any point-of-sale or to withdraw money from an ATM.  ATM withdrawals cost $2.00 per transaction.  Checks can also be used to withdraw funds.  The charge for balances less than $5,000 is $2.50/month.  Balances earn interest based on the daily balance according to the following as of October 2022**:

< $5,000.00                 .05%

$5,000.00 - $24,999.99       .15%

$25,000.00 - $49,999.99       .30%

$50,000.00 + .50%

**Illustration only see rates and fees here Health-Savings-Account-Fee-and-Interest-Rate-Schedule-0-00.pdf

Participants also have the option of investing through the HSA Invest program HSA Investment Options.