Health Savings Account (HSA)
\n \n\n A Health Savings Account (HSA) is a tax-exempt trust or custodial\n account established exclusively for the purpose of paying qualified\n medical expenses for beneficiaries covered under a qualified High\n Deductible Health Plan (HDHP). With an HSA, you can pay for current and\n future eligible medical, dental, and vision expenses. The funds can be\n withheld through payroll deduction, and therefore employees do not pay\n federal, state, or social security taxes. The employer also saves the\n matching FICA taxes.\n
\nIn order to open an HSA, you:
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- \n Must be covered by a qualifying High Deductible Health Plan (HDHP)\n \n
- \n Must not be covered by any other health plan that is not an HDHP\n \n
- Must not be enrolled in Medicare \n
- \n Must not be claimed as a dependent on another persons tax return\n \n
\n An HDHP costs less than traditional health care plans due to the higher\n deductible, so the money saved on premiums can be added to your HSA.\n
\n\n Pre-tax dollars mean you get access to the funds before social security,\n federal and state tax, etc. Say you work 10 hours at $10 ($100) and you\n wanted to set aside $25 for eligible expenses. Instead of getting taxed\n on the full $100, you would only get taxed on the $75 since the $25 was\n taken out before!\n
\n\n Average taxes in the United States are about 20%, if you were taxed on\n the $100 that totals $20 of taxes. If you were taxed solely on the $75,\n that totals only $15 of taxes. The yearly maximum contribution amount\n for an HSA is $4,150 for an individual or $8,300 for a family. If you\n had a family HSA and made $50,000 annually- you would only be taxed\n $8,580 compared to the full $10,000.\n
\n\n If you did not set funds aside, you would pay an extra $1,420 of taxes\n by waiting to pay for your share of medical expenses after-tax.\n
\n\n You own and control the funds in your HSA. The money you contribute to\n your HSA is federally tax-deductible, whether or not you itemize\n deductions. Your funds can be conveniently accessed by a debit card to\n pay for medical expenses.\n
\n![\"Card](\"@/assets/card.png\")
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- It conveniently helps the participant with cash flow \n
- The card pays directly to the provider at the point of sale \n
- It adds a convenience to accessing participant funds \n
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\n \n We are relentless in our commitment to helping our members navigate\n the complex world of healthcare and passionate about disrupting the\n status quo. WealthCare provides the SMART HSA, which offers\n easy-to-use tools that takes the guesswork out of spending and\n saving decisions. Our best-in-class concierge team allows our\n members to speak with experts and receive guidance on saving,\n spending, and investments.\"\n \n
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WealthCare Saver
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UMB
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| \n Contributions\n | \n|
|---|---|
| WealthCare Saver | \nUMB | \n
| \n Yes - fuly integrated with RMR\n | \n\n Yes - fully integrated with RMR\n | \n
| \n Distributions\n | \n|
|---|---|
| WealthCare Saver | \nUMB | \n
| Yes | \nYes | \n
| \n Investments\n | \n|
|---|---|
| WealthCare Saver | \nUMB | \n
| \n Yes - Self-directed\n | \n\n Yes - Self-directed\n | \n
| \n Single Sign-on\n | \n\n Single Sign-on\n | \n
| \n Statements/Reporting\n | \n|
|---|---|
| WealthCare Saver | \nUMB | \n
| Yes | \nYes | \n
\n If you use the funds for expenses other than health care-related\n expenses, you must pay income tax plus a 20% penalty. Federal limits\n dictate how much can be contributed to an HSA each year. It also\n provides a $1,000 catch-up provision for individuals over age 55 (not\n enrolled in Medicare). After reaching age 65, the funds may also be used\n for non-medical related expenses. You will only have to pay income tax\n on the withdrawals at that point.\n
\n\n If you begin an HSA with an employer and you leave the employer, your\n funds are not lost and can move along with you. The difference is that\n you become responsible for the monthly fees to keep the account open and\n a new card/account will be created for you independent of the former\n employer.\n
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