Page 47 - 2021 Miami Marlins Front Office Benefits Guide

HEALTH SAVINGS ACCOUNT (HSA)
A powerful savings account

with tax advantages.

An HSA is a personal savings account used to pay for medical,
dental, vision, prescriptions, and other qualified medical expenses
now or into the future.

How does an To open an HSA, you need to have a Qualified High-Deductible
HSA work? Health Plan (QHDHP). QHDHPs generally have lower monthly
premiums and higher out-of-pocket costs. They work hand-in-hand
with HSAs because, when those out-of-pocket costs come due, the
HSA is there to help you pay them.

It’s important to note that you can’t open an HSA if you are:

• Covered by any health plan other than a QHDHP.
• Enrolled in Medicare.

• Claimed as a dependent on another individual’s tax return.

What are the tax 1. Money can go in tax-free.
advantages of All pre-tax payroll contributions you make can lower your
taxable income (and therefore the amount of tax you pay on it).
an HSA? And if you contribute money after tax, it’s tax-deductible up

to the annual contribution limit.

2. Money comes out tax-free.
You’re never taxed for using your HSA dollars to pay qualified
medical expenses.

3. Interest and earnings are tax-free.
Any interest and earnings on your account grows tax-free.

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