An HSA is an individual savings account to help individuals cover out-of-pocket medical expenses. While HSAs are typically offered through an employer, anyone can open an HSA if they are enrolled in a high-deductible health plan (HDHP). Per the IRS, HSAs may only be used to purchase qualified eligible items or pay for eligible medical expenses. HSAs never “expire,” as funds roll over year over year. Also, if you leave your place of employment, your HSA is fully portable, and you can retain the account for life. The amount you can save each year depends on your coverage level.
HSAs allow you to save pre-tax dollars for your healthcare costs. The amount contributed to your HSA is taken from your pay before payroll taxes are calculated, which can help you pay less in taxes.
HSAs are fully portable, regardless of your employer. If you leave for another organization, your HSA remains intact, with all the money you’ve contributed. You may always withdraw from it for qualified eligible expenses, and you may continue to contribute to it as long as you’re covered under a high deductible health plan (HDHP).
As an individually owned account, the funds in your HSA do not forfeit at the end of the plan year and always belong to you. HSA optimizers may build their funds year over year to ensure they have money for medical expenses when they need them. Uninvested funds are FDIC-insured and gain interest over time.
Once your balance reaches a specified level, you may invest* HSA funds like you would in a retirement account.
*Investments in securities through HSA investments are:
The easiest way to access your HSA is to use your MyChoice Accounts Visa debit card. If you have paid for an eligible expense out of pocket and would like to reimburse yourself, you may put in a fund request.