Health Savings Accounts (HSAs) are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis.

• Contributions are tax deductible and can be deducted from your gross income.
• The balance grows on a tax deferred basis, and the monies used for eligible medical expenses are tax free (monies used for non eligible medical expenses are taxed and subject to a 10% penalty).
• You can roll over your funds from year to year, and like an IRA, funds used after age 65 for eligible medical expenses are still tax free and those used for other reasons are not penalized and taxed at your normal tax rate.

Health Savings Accounts are made available through the Federal government on a tax favored basis. To determine if your state also provides tax benefits, please contact your state tax resource.

Take time to learn how to use your HSA:

• Review HSA limits to ensure you do not contribute more than allowed by the IRS.
• Ensure that your account is used to pay for qualified healthcare expenses.

Please visit our Frequently Asked Questions and the IRS Website for more information.

Additional Resources

United States Department of Treasury http://www.treas.gov/offices/public-affairs/hsa/
IRS publication 502-Qualified medical and dental expenses

Tax filing
We will provide you with the necessary forms to complete your IRS tax filing.

The Year-End Summary-provides you the summary information for the amounts and types of contributions and distributions made to your Health Savings Account for that year.

IRS form 1099-SA provides you with the amount of distributions made from your Health Savings Account for that year.

IRS form 5498-SA provides you with the amount of contributions that were made to your Health Savings Account for that year. Since you can continue to make contributions up until April 15th of the following year, this form is mailed in May of the following year.

You are required to complete an IRS tax form 8889 that you can either download from here, or get the same form from the IRS at www.IRS.gov