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Health Savings Accounts

Invest in your health and save

Did You Know?

The average annual out-of-pocket health care expenses per family are more than $2000

If you are enrolled in a High Deductible Health Plan, you may also be eligible to contribute to a Health Savings Account (HSA)

You could put tax-free money aside to pay for medical expenses, and it can roll over every year if you don’t use it

Consider what an HSA can do for you!

With an HSA, you can save for eligible health care expenses tax-free
You can also put your HSA money into a selection of investments and let it grow tax-free
That means more for your dollar!

What Can You Use It For?

You can use the money in your HSA for eligible medical expenses.
Prescriptions and over-the-counter medications
Deductibles, co-insurance and co-payments
Eyeglasses, contact lenses or LASIK
Dental and orthodontia expenses

And more …

Prescription sunglasses
Artificial teeth/dentures
Smoking cessation programs
Birth control
Vaccinations
School and work physicals
Chiropractic care
Psychiatric care
Hearing aids/batteries
Dermatologist’s fees

Wheelchair and/or crutches
Assistance for the disabled
Diabetic supplies
Orthopedic shoes
Well baby care
Amounts over plan limits
Ambulance
Physical therapy
Acupuncture

How much can you save?

pIt can boost your income! HSA participants typically save an average of 30 percent on all eligible expenses
When you contribute to an HSA and pay $2000 in medical expenses, you can see a tax savings of about $600p
An HSA is an excellent way to help offset rising health care costs

Example 1: Jack participates

Jack puts $2900 into his HSA.

Taxable income .…………...….$35,000

HSA annual election ………..…...$2900

New taxable income………..… $32,100

At a 30%* tax rate, Jack will pay $9630 in payroll-related taxes.

Jack’s tax savings = $870

*Combination of federal and state income and FICA taxes.

Example 2: Dianne does not participate

Dianne does not participate in the HSA plan.

Taxable income……………...….$35,000

HSA annual election…...……..………$0

New taxable income.………..… $35,000

At a 30%* tax rate, Dianne will pay $10,500 in payroll-related taxes.

Dianne’s tax savings = $0

*Combination of federal and state income and FICA taxes.

Why pay more in taxes when you can pay less?

Put the savings in your bank.

How does an HSA work?

First, decide how much money you want to put into your HSA

p2009 maximum contributions are:

>$3,000 for individual High Deductible Health Plan

>$5,950 for family High Deductible Health Plan

n >Additional $1,000 “Catch-up” contribution for those over age 55

pAn equal portion of your HSA election is taken out of each paycheck before taxes and put into your HSA

Please check your enrollment materials for more information on eligible and ineligible dependents and expenses or you may request information by clicking on Contact Us or visit IRS Publication 969 (2008)