Health Savings Account (HSA) cont ’ d.
Generally, you can put enough in your HSA to cover most of your deductible .
The Qualified High Deductible Health Plan helps you pay for healthcare AFTER you meet the deductible. The annual contribution limit is based on IRS rules. In general, the total amount that goes in your account each year cannot be more than the IRS annual contribution limit. If you are age 55 or older, you are allowed to make an extra $1,000 catch - up contribution each year. You can spend only the money that is actually in your HSA. If your healthcare expenses are more than your HSA balance, you need to pay the remaining cost another way, such as cash or personal check. You can request reimbursement after you have accumulated more money.
Facts and tips Your account can grow over time... Since the money always belongs to you, even if you leave The School District of Clayton, any unspent funds carry over from year to year, so you never have to worry about losing your money. That means if you do not use a lot of healthcare services now, your HSA funds will be there if you need them in the future – even after retirement. HSA ’ s are also an investment opportunity … With an HSA, your account can grow tax - free in an interest - bearing savings account, a money market account, a wide variety of mutual funds – or all three. Of course, your funds are always available if you need them for qualified healthcare expenses.
You can use your HSA for your spouse and dependents – even if they are not covered by your High Deductible Health Plan.
You can use HSA funds for IRS - approved items such as …
Physical & speech therapy
Orthodontia, cleanings & fillings
Dental services
Doctor ’ s office visits
Eye exams & eyeglasses
Laser eye surgery
Hearing aids
Chiropractic expenses
Contact lenses & solution
Prescription drugs
More information about approved items, plus additional details about the HSA, is available on the IRS Website at irs.gov .
Every time you use your HSA, save your receipt in case the IRS asks you to prove your claim was for a qualified expense. If you use HSA funds for a non - qualified expense, you will pay taxes and a penalty on the ineligible amount.
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