When you enroll in the HSA medical plan, you get a Health Savings Account (HSA).
- Donnelley Financial Solutions contributes, and you should consider contributing, too. The company will contribute a certain amount based on your coverage level. The total contributions to your account — yours and Donnelley Financial Solutions combined — can go up to the IRS limit.
- Save on taxes when you contribute. All contributions you make to your HSA are before taxes — so you don’t pay taxes on your HSA contribution amount.
- You decide. You can choose to use your Health Savings Account (HSA) to pay for eligible health care expenses with tax-free dollars or save that money for future expenses. It’s a choice you get to make each time you have expenses.
- Track your contributions. With all this money going into your account, remember, you are responsible for making sure you don’t exceed the annual contribution limit or overdraw your account. Monitor your HSA contributions carefully.
- Watch your account balance grow tax-free. You can invest a portion of your HSA dollars in mutual funds — just like you would with a 401(k). You can choose from a variety of mutual funds at optumbank.com (if you’ve met the investment threshold).
- Use your HSA debit card if you do have money in your account — that way you don’t have to pay out of pocket. Your debit card draws right from your HSA to use for eligible health care expenses.
- Or pay yourself back if you don’t have enough money in your HSA to cover your eligible expenses. You can pay the expenses out of pocket, and then reimburse yourself once funds are available in your HSA.
- Be careful what you spend on. If you use your HSA dollars for non-qualified expenses before you reach age 65, those dollars will be subject to income taxes and an additional 20% excise tax. Learn what’s an eligible expense.
When you reach age 65
At age 65, HSA funds can be used for everyday spending and are only taxed at your income tax rate — the excise tax no longer applies.
- Maximize your tax advantage. If you have an HSA, you can still contribute to the Limited-Use Health Care FSA. You can use the FSA to pay for dental and vision expenses until you meet your medical plan deductible, but you can use your HSA at any time to pay for eligible health care expenses.
- Name a beneficiary. Just like any investment account you open, your HSA is yours to keep. You should make sure to choose a beneficiary to pass on any unused funds. Go to optumbank.com or download the Optum Bank app from your app store to manage your account.