Health Savings Accounts
Available to employees with a high-deductible health plan
We are pleased to offer you the option of funding a health savings account (HSA) through payroll deduction. HSAs may be used with high-deductible health plans to help you manage health-care costs.
If you are not familiar with the health savings account concept:
- You set aside funds tax-free to pay for health care expenses
- The account functions like a checking account with accruing interest
- Payments for medical expenses may be made by debit card
- Funds accumulate over time, rolling over from year to year
- Funds are fully vested, belonging only to you
- The account is portable between employers
- A penalty and tax liability is incurred if you use the funds for other, non-qualifying purposes
If you are unfamiliar with the HSA concept, visit the HSAcenter website to learn more. The IRS allows you to fund an HSA with pre-tax dollars to pay for almost all medical (including dental and vision) expenses; for details, see HSA center’s eligible/ineligible expense list. The HSA account is owned by you, managed separately from the insurance, portable between employers, and rolls over annually (you don’t lose it).
Setting up an HSA
Once you are covered by a high-deductible health plan, you will be able to open an HSA with any financial institution that offers them.
Funding an HSA
When you have opened your account you can fund your HSA pre-tax through payroll deduction. Simply complete the HSA Direct Deposit Authorization form.
If you need any assistance, please do not hesitate to call Outstaffing, as we are here to help you.