Page 10 - American Advisors Group Benefit Guide 2_NonCA

EMPLOYEE BENEFITS 10

HEALTH SAVINGS ACCOUNT

The Cigna HSA high deductible health plan is designed to work with a Health Savings Account (HSA) to give you more control over how your
health care dollars are spent. Federal legislation allows you to contribute to your HSA on a pre-tax basis and then use these funds to pay for
qualified health expenses until you meet your deductibles and out-of-pocket maximums. If you do not use all of the money in your HSA in a
given calendar year, the remaining money “rolls over” for use in future years.

Eligibility
» You are not enrolled in other medical coverage with non-qualifying or deductibles less than $1,400 for an individual
» Your spouse is not enrolled in a non-qualifying medical plan that also covers you
» You are not enrolled in Medicare Part A or B
» You have not received VA medical benefits for 90 days prior to contributing to the HSA
» You cannot be claimed as a dependent on someone else’s tax return
» You are not covered through a general purpose FSA with your spouse

Why Open A Health Savings Account?

Long-Term Savings
HSA accounts are an excellent tax- saving retirement vehicle. In 2020, individuals and families with an eligible HDHP may contribute up to
$3,550 for individual and $7,100 for family. Additionally, if you are age 55 or older, you may make an additional “catch-up” contribution of
$1,000. HSA funds earn interest and roll over each year.

Portability
The money you contribute to your HSA is completely portable. Even if you change jobs, health insurance plans or retire - the account is
always yours. Consider it your lifetime healthcare savings account.

Tax-Free Growth
HSAs are triple tax free - your contributions, investments and distributions for qualified medical expenses are all exempt from federal taxes.
(Consult your legal and tax advisor for limitations in certain states). Careful planning and spending of your HSA funds can really add up to
meaningful savings.

Investment Opportunity
Money in your HSA rolls over each year and earns interest developing meaningful savings. Once the balance in your HSA reaches a certain
threshold, you are allowed to move funds into a variety of mutual funds to further grow your healthcare dollars.