Health Savings Account
A Health Savings Account (HSA) is a great way to save for current and future medical expenses because it offers a double tax advantage:
- Contributions are tax free.* The money comes out of your paycheck before taxes are deducted. For 2017, you can contribute up to $3,400 for individual coverage, or $6,750 for family coverage on a tax-free basis. The 2018 limits are $3,450 for individual coverage, or $6,900 for family coverage. If you are or will be age 55 during the year, you can contribute an extra $1,000 over and above these limits. The money you spend on qualified expenses is also tax free.
- Any money you don’t use stays in your account earning interest, which is also tax free. *Some states, including California, New Jersey, and Arkansas tax HSA contributions. Learn more.
*Some states, including California, New Jersey, and Arkansas tax HSA contributions. Learn more.
No other investment offers these advantages, making the HSA a great way to save for current and future medical expenses, even for expenses in retirement. Best of all, you own 100% of the money in your account—even if you change jobs or retire. And any money you don’t use during the year stays in your HSA—earning interest—for you to use in the future.
You’re eligible for an HSA if you enroll in the High Deductible Health Plan, are designated full time and work 30 or more hours a week.
You can enroll, start, stop, or change your contributions at any time.
How it works
After you enroll, you’ll get a debit card from Ameriflex—the HSA administrator—that you can use to pay expenses. It’s the most convenient way to pay. You can use it at any doctor’s office, pharmacy, or other provider that takes debit cards. You’ll also receive checks that you can use to pay expenses. For more options, call Ameriflex at 888-868-3539.
Use your HSA to save for tomorrow
Most people know that their 401(k) is a way to save for retirement costs. But did you know that many financial advisors now recommend using HSAs as another way to save for retirement?
Tips for getting the most out of your HSA in the future:
- Use as little of the money in your account today as possible. Think of your HSA as another retirement account: The money is untouchable until you retire. You’ll get tax savings today and the money in your account will grow with interest.
- Make the maximum allowed contribution each year. For individual coverage: $3,400 for 2017 and $3,450 for 2018. For Family coverage: $6,750 for 2017 and $6,900 for 2018. If you are or will be age 55 during the year, you can contribute an extra $1,000.
- Invest your contributions wisely. Use the same investing strategy you use for your other retirement accounts. Ameriflex offers several options. For more information, call Ameriflex at 888-868-3539.