This month’s employee memo gives participants answers to common questions on Health Savings Accounts. Download the memo from your Fiduciary Briefcase at fiduciarybriefcase.com and distribute to your participants. Please see an excerpt below.
Health savings accounts (HSAs) have grown tremendously in popularity over the past few years. You’ve probably heard of them or maybe your employer offers one. This memo will uncover answers to common questions you may have about HSAs.
What’s an HSA?
A type of health savings accounts that allow you to set aside money on a pre-tax basis to pay for qualified medical expenses.
Can anyone get an HSA?
In order to open an HSA, an individual must first enroll in a qualified high deductible health plan (HDHP).
I’ve heard HSAs have triple-tax advantages, what are they?
- Contributions are tax free.
- Contributions can be invested and grow tax free.
- Withdrawals aren’t taxed, if used for qualified medical expenses.
If I change employers, what happens to my HSA?
HSAs are completely portable for employees, meaning you may take it with you if you change employers.
Do I lose my HSA funds at the end of the year?
No. The balance from your health savings accounts can grow and carry from year to year and can also be invested.
What can I pay for with my HSA?
Generally health savings accounts funds can be used to pay for anything that your insurance plan considers a “covered charge,” including charges not paid by your health insurance because they were subject to a co-pay, deductible or coinsurance.
SECURITIES AND ADVISORY DISCLOSURE:
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Fee based planning offered through SDM Advisors, LLC. Third party money management offered through Valmark Advisers, Inc a SEC registered investment advisor. 130 Springside Drive, Suite 300, Akron, Ohio 44333-2431. 1-800-765-5201. SDM Advisors, LLC is a separate entity from Valmark Securities Inc. and Valmark Advisers, Inc. Form CRS Link
DISCLAIMER:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. The services of an appropriate professional should be sought regarding your individual situation.
HYPOTHETICAL DISCLOSURE:
The examples given are hypothetical and for illustrative purposes only.
