Episode 32: Health Savings Account (HSA)

KEY TAKEAWAYS:

  • Open enrollment is a time when employers allow employees to enroll or opt-into their workplace healthcare plan. This sometimes includes a health savings account, or HSA. This type of account can have money added into it directly from your paycheck before tax.

  • An HSA can be used for qualified healthcare expenses like wellness visits, prescription medicine, and specialty care. It can help cover the costs of care that isn’t covered by insurance like mental healthcare or fertility treatments.

  • HSA’s can grow interest, and sometimes even be invested to earn more money than you’re contributing into the account.

  • To use the money in an HSA account for something other than medical expenses, you will be charged a fee for the withdrawal, and you will also own income tax on it.

  • The maximum contribution limit for yourself in 2021 is $3600. For you and your family, the limit is $7200.

  • GHS is here to help with any questions concerning your accounts and managing your money goals! Stop in to a branch or call us if you need us at (800) 732-4447.