hsas from safety net to nest egg - purdue university...©2020 hsa bank. hsa bank is a division of...
TRANSCRIPT
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1©2019 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. | ©2020 HSA Bank. HSA Bank is a division of Webster Bank, N.A., Member FDIC.
HSAsFrom safety netto nest egg
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Your health means everything.
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What’s your safety net?
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HSA Bank Health & Wealth Index℠ 2019
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What’s an HSA?
Unique savings account
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Use it for medical expenses not covered by your insurance.
Retirement account
Your HSA is like a 401(k) with added benefits.
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How it works
Must have an HDHP
……….……..Used for qualified medical expenses
……….……..Used before and after meeting deductible
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Using your HSA for IRS-qualified medical expenses
hsabank.com/QME
• Acupuncture
• Ambulance
• Artificial limbs
• Artificial teeth
• Birth control treatment
• Blood sugar test kits for diabetics
• Breast pumps and lactation supplies
• Chiropractor
• Contact lenses and solutions
• Crutches
• Dental treatments (including X-rays, cleanings,fillings, sealants, braces and tooth removals)
• Doctor’s office visits and copays
• Drug addiction treatment
• Drug prescriptions
• Eyeglasses (Rx and reading)
• Fluoride treatments
• Fertility enhancement (including in-vitro fertilization)
• Flu shots
• Guide dogs
• Hearing aids and batteries
• Infertility treatment
• Inpatient alcoholism treatment
• Insulin
• Laboratory fees
• Laser eye surgery
• Medical alert bracelet
• Medical records charges
• Menstrual care products
• Midwife
• Occlusal guards to prevent teeth grinding
• Orthodontics
• Orthotic inserts (custom or off the shelf)
• Over-the-counter medicines and drugs
• Physical therapy
• Special education services for learning disabilities (recommended by a doctor)
• Speech therapy
• Stop-smoking programs (including nicotine gumor patches, if prescribed)
• Surgery, excluding cosmetic surgery
• Vaccines
• Vasectomy
• Vision exam
• Walker, cane
• Wheelchair
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How to save in your HSA
If you’re 55 or older, you may be eligible to make a catch-up contribution of an extra
$1,000per year.”
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Anyone can contributeto your account.
View the annualcontribution limits athsabank.com/irs-guidelines.
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How to save in your HSA
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Recurring contributions
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One-time contribution
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Use your premium savings
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Yours forever
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The HDHP/HSA & HSA Contribution Limits
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How to pay with your HSA
Debit card
……….……..Online bill pay
……….……..Reimburse yourselffor qualified expenses paid out of pocket after account opening
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Who can open an HSA?
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Not covered by another type of health plan, including Medicare
Not covered by TRICARE
Not receive medical benefits from the VA for non-service-connected disabilities in the previous three months*
Not claimed as a dependent on another person’s tax return (except spouse’s)
Not covered under a general-purpose healthcare FSA or HRA
*Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that suchdisability was not incurred or aggravated in line of duty in the active military, naval, or air service.
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Not covered by Indian Health Services
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What can an HSA do for YOU?
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Your best financial safety net
A healthy 65-year-old couple can expect over
$600,000in future lifetime healthcare costs.
“The Long-Term Value of an HSA.” HealthView Services. May 2020. https://hvsfinancial.com/wp-content/uploads/2020/05/the-Long-Term-Value-of-an-HSA-1.pdf
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Pay less in taxes
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You don’t pay federal taxes on contributions to your HSA.*
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Earnings to your HSA from interest and investments are tax free.
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You don’t pay taxes on distributions when used for qualified medical expenses.
*Earnings are exempt from federal taxes. Most states do not tax HSA earnings. However, state tax treatment varies. Please consult with a tax advisor or the state department of revenue for more information.
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Boost your retirement savings
After age 65, you can use your savings for any purpose without a penalty.
……….……..Take advantage of investment options.*
……….……..Like a 401(k), your HSA helps you keep more of your own money when you retire.
*Investment accounts are not FDIC insured and they are not bank guaranteed. Investment accounts are not a deposit account, or an obligation of HSA Bank, and they may lose value. They are not guaranteed by any federal government agency.Only funds above $1,000 in your HSA cash account can be transferred to your investment account.
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401(k) vs. HSA for retirement savings
If you use your 401(k) for healthcareexpenses, you’ll pay taxes. You’ll never paytaxes for healthcareexpenses when you useyour HSA.
HSA$100,000
401(k)$100,000
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$100,000for healthcare
$76,000for healthcare
-$24,000(taxes)
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“The Long-Term Value of an HSA.” HealthView Services. May 2020. https://hvsfinancial.com/wp-content/uploads/2020/05/the-Long-Term-Value-of-an-HSA-1.pdf
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Making the most of your HSA
Contribute up to the IRS limit.
Try not to use your HSA when you can pay out of pocket.
Schedule recurring contributions.
Take advantage of incentives from your employer.
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Treat your HSA like a retirement account.
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OK, so I should consider investing my Health Savings Account. What do I need to know?
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Let’s compare the HSA to a 401(k) for retirement savings
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Introducing our self-directed investment options for HSAs
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Devenir Guided Portfolio Self-Directed Investment Program
Competitive fund lineup of low-cost, no-load mutual funds
No minimum investment to purchase mutual funds
Free to transfer between investment account and cash account
Access to informational materials
Auto-rebalance
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TD Ameritrade Self-Directed Brokerage Option
Investment accounts are not FDIC insured and they are not bank guaranteed. Investment accounts are not a deposit account, or an obligation of HSA Bank, and they may lose value. They are not guaranteed by any federal government agency. Performance data and ratings represent past performance and are not a guarantee of future results. Investment returns and principal valuewill fluctuate and investors’ shares, when sold, may be worth more or less than their original cost.
Stocks/Bonds/ETFs/Options
Thousands of mutual funds
Four ways to place trades: website, telephone, mobile device, and broker
Integrated online access to trading, balance information, and much more through HSA Bank’s Member Website
Trading fees may be applied; additional fees vary by program, location, or arrangement.
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Getting Started
We give you everything you need to use, grow and manage your account:
• Welcome Kit: This valuable “starter package” contains your 8-digit account number, important disclosures and a privacy statement.
• Debit Card: Arrives separately from the Welcome Kit and is delivered in a plain, blank envelope for security reasons. Activation instructions are included.
• Online Banking: Provides 24/7 account information, including activity and balance information, electronic statements, tax documents, email notifications and electronic fund transfers.
• Authorized Signer Form: Lets you authorize someone who wants to access your account and information.
• Beneficiary Designation Form: Lets you designate a beneficiary for your HSA.
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HSA Member Website
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HSA Bank Mobile
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Tools and Forms for the Employee
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28©2019 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. | ©2020 HSA Bank. HSA Bank is a division of Webster Bank, N.A., Member FDIC.
THANK YOU