What Is an HSA?
A smarter way to save for healthcare
A health savings account, or HSA, is a personal savings account that can be used to pay for medical, dental, vision, and other qualified expenses now or later in life.
- You must be enrolled in a qualified high-deductible health plan
- Your HSA balance rolls over from year to year, earning interest along the way
- You can even opt to invest the funds in your account*
Health savings accounts
Those Age 55+
Frequently Asked QuestionsView All ›
An HSA from Omnify is a personal savings account that can be used to pay for medical, dental, vision, and other qualified expenses now or later in life. HSAs allow you to save money by reducing your taxable gross income, spending pre-tax dollars for healthcare, and growing your HSA dollars tax-free.
Since it’s a savings account, you’re encouraged to save more than you spend. Unlike flexible savings account funds, which are “use it or lose it,” your HSA balance rolls over from year to year, earning interest along the way. The funds can even be invested, making it a great addition to your retirement portfolio.* The account is portable, meaning if you ever leave your employer, you can take the HSA with you because it’s your money and your account.
*Investment products: Not FDIC Insured - No Bank Guarantee - May Lose Value
The IRS has established the following annual contribution limits.
|Individual coverage||Catch-up for those age 55+|
- Use your benefits card
- Pay bills through online BillPay
- Reimburse yourself for out-of-pocket healthcare purchases
Yes, over-the-counter (OTC) medications are an eligible expense. An OTC medication is a product with an active drug ingredient. A few of the most common items are pain relief medication, cold and flu products, allergy products, and heartburn medication. You can find a comprehensive list on the HSA Store website.
Yes, IRS Form 8889 is used to report HSA contributions and distributions. You must complete this form each year with your tax return. Please consult a tax professional regarding tax rules.
The tax treatment of employer HSA contributions depends on how the business is incorporated. For sole proprietors, partnerships, and S-corporations, contributions to a partner’s HSA will be treated as a distribution to the partner and included in the partner’s income and may be deductible by the partner but not by the business (see IRS Notice 2005-8 for treatment of HSA contributions in exchange for guaranteed payments of services rendered for partners and two percent shareholder employees of S-corporations). For larger corporations, employer contributions are treated as employer-provided coverage for medical expenses under an accident or health plan.
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