Page 14 - 2017 Benefits Enrollment Busey Pulaski
P. 14
2017 BENEFITS ENROLLMENT
What are Examples of Ineligible HSA Expenses?
The following expenses may not be reimbursed from an HSA.
Premiums for Medicare supplemental policies
Expenses covered by another health plan
Expenses incurred prior to the date the HSA was established
Planning for the Future
What will happen to the money in my HSA when I turn 65? You
can continue to use your account tax-free for out-of-pocket health
expenses. When you enroll in any portion of Medicare, you can no
longer contribute to an HSA, but you can still use your account to pay
Medicare premiums, deductibles, copays, and coinsurance under any part
of Medicare. The one expense you cannot use your account for is to
purchase a Medicare supplemental insurance or “Medigap” policy.
Once you turn age 65, you can also use your account to pay for things
other than medical expenses. If used for other expenses, the amount
withdrawn will be taxable as income but will not be subject to any other
penalties. Individuals under age 65 who use their accounts for non-
medical expenses must pay income tax and a 20 percent penalty on the
amount withdrawn.
Who Will Administer the HSA?
First Busey Corporation uses Busey to administer the HSAs for
associates enrolled in the CDHP. For more information, please see any
Personal/Universal Banker.
14 FIRST BUSEY CORPORATION
What are Examples of Ineligible HSA Expenses?
The following expenses may not be reimbursed from an HSA.
Premiums for Medicare supplemental policies
Expenses covered by another health plan
Expenses incurred prior to the date the HSA was established
Planning for the Future
What will happen to the money in my HSA when I turn 65? You
can continue to use your account tax-free for out-of-pocket health
expenses. When you enroll in any portion of Medicare, you can no
longer contribute to an HSA, but you can still use your account to pay
Medicare premiums, deductibles, copays, and coinsurance under any part
of Medicare. The one expense you cannot use your account for is to
purchase a Medicare supplemental insurance or “Medigap” policy.
Once you turn age 65, you can also use your account to pay for things
other than medical expenses. If used for other expenses, the amount
withdrawn will be taxable as income but will not be subject to any other
penalties. Individuals under age 65 who use their accounts for non-
medical expenses must pay income tax and a 20 percent penalty on the
amount withdrawn.
Who Will Administer the HSA?
First Busey Corporation uses Busey to administer the HSAs for
associates enrolled in the CDHP. For more information, please see any
Personal/Universal Banker.
14 FIRST BUSEY CORPORATION
