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ESB-727-0312
ESB-727-0312
What is an HSA?
Health Savings Account
Retirement Accounts
Checking Account
Savings Account
ESB-727-0312
What is an HSA?• Individually owned savings account• Contributions, distributions, interest earnings –
tax free• No maximum on amount that can be
accumulated• Pay for qualified medical expenses for spouse
& tax* dependents. (Tax dependents as defined by the IRS.)
• Portable
ESB-727-0312
Tax Free – Qualified Distributions
“Qualified medical expenses” spouse & tax dependant children (even if not covered under HDHP) Deductible Co-insurance/Co-pay Over the counter drugs (Over-the-counter medication
and drugs will only be eligible if prescribed by a physician, without regard to whether the drug or medication is available without a prescription)
Dental Expenses Vision Expenses
ESB-727-0312
“ Other qualified medical expenses” Health plan coverage while receiving federal or
state unemployment benefits. COBRA continuation coverage. Medicare premiums: Part A, B, C & D LTC premiums (portion of) Individuals are responsible for keeping supporting
documentation as with any other tax deductions.
Tax Free – Qualified Distributions
ESB-727-0312
Tax Free - Distributions• Even if account holders have not saved enough
in HSA to pay for an expense, can always withdraw funds later
• There is no deadline on reimbursements as long as expenses were incurred after HSA effective date
• There is no requirement to use HSA funds for all expenses
• It carries over through the years!
ESB-727-0312
Maximum Contribution Per Tax Year
Contribution Limits
Coverage 2013
Individual $3,250
Family $6,450Maximums indexed annually by Treasury Department
$1,000 Additional Contribution if you are age 55 and older!
ESB-727-0312
How Does An HSA Work?
Requirements to Contribute to an HSA:1. Must have a qualified HDHP to contribute to an HSA2. Cannot be enrolled in Medicare3. Cannot be claimed as a tax dependent on anyone’s
else’s tax return4. Cannot have any other coverage that pays first
dollar expenses below the deductible (Ex: GP-FSA through employer or spouse, HRA, access to an on-site clinic or Tribal clinic, Tri-Care or VA benefits)
ESB-727-0312
“Limited Purpose” Health FSAs &HSAs
HSADeductible
Co-ins/Co-Pay
Over-The-Counter
“Limited Purpose” Health FSAVision
Dental
ESB-727-0312
HSA vs. FSAMedical Reimbursement – FSA• Account set up by employer• Annual amount available first day
of plan year• No mid-year changes without a
qualifying event• Must use the annual amount within
the plan year• Receipts must be submitted and
claims adjudication required• Cannot accrue interest• Subject to ERISA• Unused FSA balances are forfeited
HSA• Tax-exempt trust/custodial account• Funds must be deposited before using• HSA contributions can be changed
throughout the year (IRS sets limits – indexed every year)
• Balances roll year-to-year. No limit on accumulation.
• Account holder responsible for keeping receipts and determining eligibility
• Interest can be applied• Not subject to ERISA unless employer
takes action that triggers it.• Account holder dies: Spouse becomes
owner. Otherwise, beneficiary claims as income.
ESB-727-0312
HSA
Account balances above $2,500
Mutual funds investments available
Minimum amount to move $50.00
AF Health Services Administration
Interest RatesBalance Rate$0.00 - $500.00 0.00%$501.00 - $2,500.00 0.10%$2,501.00 - $5,000.00 0.15%$5,000.00 - $10,000.00 0.70%$10,000.00+ 1.50%
ESB-727-0312
HSA
AF Health Services Administration
2 Debit Cards
Account Summary available 24/7. Account Statement mailed quarterly.
Unlimited on-line withdrawal.
Ability to upload your receipts to your account
No overdraft fees
Personalize customer service
Some miscellaneous fees may apply
ESB-727-0312
ESB-727-0312
American Fidelity HSAs
ESB-727-0312
American Fidelity HSAs
ESB-662-0710
ESB-727-0312
American Fidelity HSAs
Check your account frequently – keep information up-to-date.
ESB-727-0312
• After enrollment Welcome packet
mailed 1-2 weeks prior to HSA effective date.
Debit card mailed within 1-2 days of HSA effective date.
American Fidelity HSAs
ESB-727-0312
• A debit card will be ordered
• Use it as a credit card
• Can only use at medical providers such as doctors, pharmacies, hospitals, etc.
After Enrollment
ESB-727-0312
Learn more: www.afhsa.com www.irs.gov http://www.treas.gov/offices/public-affairs/hsa/
Contact us: [email protected] 405-523-5699 1-866-326-3600
American Fidelity HSAs
ESB-727-0312
Health Savings Accounts
Thank You
Neither Health Services Administration nor American Fidelity Assurance Company are providing tax advice. Individuals with an interest in HSAs should contact their tax advisor.