Health Savings Accounts (HSA)

Triple-Tax Advantages of the HSA

If you are enrolled in our High-Deductible Health Plan (HDHP), you are eligible to open a Health Savings Account (HSA). The HSA is a powerful financial tool with a triple-tax advantage: your contributions are pre-tax, the growth on investments is tax-free, and your withdrawals for qualified medical expenses are tax-free. Unlike a Flexible Spending Account (FSA), the money in your HSA belongs to you forever; it does not expire at the end of the year and stays with you even if you leave the company. This makes the HSA an excellent vehicle for long-term healthcare planning and retirement savings. The company also contributes $500 annually to your HSA to help you get started. Managing your healthcare costs effectively requires a strategic approach to these tax-advantaged accounts.

Using Your HSA Funds

You can use your HSA funds to pay for a wide range of qualified expenses, including doctor visits, prescriptions, dental work, and even some over-the-counter medications. You will receive a dedicated debit card for your HSA, making it easy to pay at the point of service. We recommend keeping all receipts for medical expenses in a digital folder, as you may be required to provide proof to the IRS. One advanced strategy is to pay for current medical costs out-of-pocket and let your HSA balance grow through investments until retirement. Once your balance reaches $1,000, you can begin investing in a selection of mutual funds within the HSA portal. Your HR Benefits team is available to walk you through the setup process and answer any questions about contribution limits. Financial wellness and physical health are deeply connected.