Page 13 - 2015 Enrollment Guide
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Control Planning for the Future
You make all the decisions about: What Will Happen to My Money
How much money to put into the account When I Turn 65?
Whether to save the account for future expenses or pay You can continue to use your account
current medical expenses tax-free for out-of-pocket health expenses.
Which medical expenses to pay from the account You can use your account to pay for Part
B and D Medicare premiums and any
Whether to invest any of the money in the account contribution toward your deductible,
Which investments to make copays, and coinsurance in your medical
Portability plan design. The one expense you cannot
Accounts are completely portable, meaning you can keep your use your account for is purchasing a
Medicare supplement insurance policy.
HSA even if you change jobs or medical coverage, become
unemployed, or retire. Once you turn age 65, you can also use
your account to pay for things other
Ownership than medical expenses. If used for other
Funds remain in the account from year to year. There are no “use expenses, the amount withdrawn will be
it or lose it” rules for HSAs. taxable as income but will not be subject to
any other penalties. Individuals under age
Tax Savings
65 who use their accounts for non-medical
An HSA provides you triple tax savings. expenses must pay income tax and a 20
percent penalty on the amount withdrawn.
Tax-free contributions to your account
Tax-free earnings through investment Use Your HSA to Pay For*:
Tax-free withdrawals for qualiied medical expenses Deductible Prescription
expenses drugs
Out-of-pocket Over the
maximum counter drugs
expenses with a written
Dental care prescription
Vision care Hearing aids
* Find more examples at www.irs.gov in IRC
Sec.213(d). Members will pay a penalty and tax on
all ineligible HSA expenses. You are responsible for
spending your HSA dollars appropriately
Employee Benefits Guide July 2015–June 2016
Control Planning for the Future
You make all the decisions about: What Will Happen to My Money
How much money to put into the account When I Turn 65?
Whether to save the account for future expenses or pay You can continue to use your account
current medical expenses tax-free for out-of-pocket health expenses.
Which medical expenses to pay from the account You can use your account to pay for Part
B and D Medicare premiums and any
Whether to invest any of the money in the account contribution toward your deductible,
Which investments to make copays, and coinsurance in your medical
Portability plan design. The one expense you cannot
Accounts are completely portable, meaning you can keep your use your account for is purchasing a
Medicare supplement insurance policy.
HSA even if you change jobs or medical coverage, become
unemployed, or retire. Once you turn age 65, you can also use
your account to pay for things other
Ownership than medical expenses. If used for other
Funds remain in the account from year to year. There are no “use expenses, the amount withdrawn will be
it or lose it” rules for HSAs. taxable as income but will not be subject to
any other penalties. Individuals under age
Tax Savings
65 who use their accounts for non-medical
An HSA provides you triple tax savings. expenses must pay income tax and a 20
percent penalty on the amount withdrawn.
Tax-free contributions to your account
Tax-free earnings through investment Use Your HSA to Pay For*:
Tax-free withdrawals for qualiied medical expenses Deductible Prescription
expenses drugs
Out-of-pocket Over the
maximum counter drugs
expenses with a written
Dental care prescription
Vision care Hearing aids
* Find more examples at www.irs.gov in IRC
Sec.213(d). Members will pay a penalty and tax on
all ineligible HSA expenses. You are responsible for
spending your HSA dollars appropriately
Employee Benefits Guide July 2015–June 2016
