Page 8 - AAG Benefits Guide OOS (Non-CA) Employees

7 OUR FAMILY CARING FOR YOURS

HEALTH SAVINGS ACCOUNT

The Cigna High Deductible Health plans (HDHPs) are 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.

Why Open A Health Savings Account?

Eligibility Long-Term Savings — HSA accounts are an excellent
tax- saving retirement vehicle. In 2021, individuals and
// You are not enrolled in other families with an eligible HDHP may contribute up to
medical coverage with non- $3,600 for individual and $7,200 for family. Additionally, if
qualifying or deductibles less you are age 55 or older, you may make an additional
than $1,400 for an individual “catch-up” contribution of $1,000. HSA funds earn interest
and roll over each year.
// Your spouse is not enrolled in
a non-qualifying medical plan Portability — The money you contribute to your HSA is
that also covers you completely portable. Even if you change jobs, health
insurance plans or retire - the account is always yours.
// You are not enrolled in
Medicare Part A or B Consider it your lifetime healthcare savings account.
Tax-Free Growth — HSAs are triple tax free, your
// You have not received VA
medical benefits for 90 days contributions, investments and distributions for qualified
prior to contributing to the HSA medical expenses are all exempt from federal taxes.
(Consult your legal and tax advisor for limitations in certain
// You cannot be claimed as a states). Careful planning and spending of your HSA funds
dependent on someone else’s can really add up to meaningful savings.
tax return
Investment Opportunity — Money in your HSA rolls over
// You are not covered through each year and earns interest developing meaningful
a general purpose FSA with savings. Once the balance in your HSA reaches a certain
your spouse threshold, you are allowed to move funds into a variety of
mutual funds to further grow your healthcare dollars.

THE MONEY YOU INVEST INTO THE

ACCOUNT IS ALWAYS YOURS TO KEEP.