Using Your HSA
A health savings account (HSA) is a savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. As an HSA accountholder, you own your HSA and have the flexibility to choose whether you spend, save, or invest your HSA dollars. Your HSA is portable so it stays with you even if you change employment.
HSA Savings
With an HSA, you save approximately 30%* on your eligible expenses, making a $1,000 expense cost you about $700. You get these savings because the contributions you make to your HSA are exempt from Federal, State, and FICA payroll taxes.
While the money you contribute to your HSA is tax-free, any additional money that you earn from interest and/or investing is also considered tax-free as long as these funds are used for eligible medical expenses. This means that the money that you contribute, spend, and earn through interest and investing is all tax-free.
*This tax example is a broad approximation of tax liability. Further, your contributions may be subject to state income tax in some states. Your specific savings depend on your tax bracket. You should consult a tax advisor for help with your own situation. Current IRS tax laws control all pre-tax payment and contribution matters and are subject to change.
The Road to Financial Wellness
However you choose to use your HSA funds, you will receive tax-free savings that can assist you on the road to financial wellness. With an HSA, you can spend, save, or invest your HSA funds.
Spend
Use funds on a tax-free basis to pay for eligible purchases as they come up.
Save
Put funds away for future expenses. Take advantage of a high-yield HSA, which gives you the potential of a higher interest rate.
Invest
Help support your financial wellness by investing your HSA funds for health emergencies or health costs incurred during retirement.
Investing in your HSA
Once you reach the minimum account balance, you can start investing your HSA funds. At EBC, we offer an innovative and modern investment experience that provides access to different investment account types, real-time investment account opening and trading, and modern investment tools. Learn more about investing your HSA funds in your online account.
Getting Started with Your HSA
Now that you have your HSA, set yourself up for success with these HSA best practices.
Set Up Your Online Account
This is the easiest way to manage your benefits. To learn more about setting up your online account, visit www.ebcflex.com/HSAOnlineAccount.
Download EBC Mobile
Download from the App Store or Google Play. Use your existing online account information or register for a new account.
Add Beneficiaries
Through your online account, designate a beneficiary for your HSA.
Save Your Receipts
You do not need to submit any receipts or documentation. However, it’s a good idea to save health care bills and documentation in case of an IRS audit.
Access Statements & Tax Forms
Once available, you can access statements and tax forms in your online account.
Start Using Your HSA
Access www.ebcflex.com/eligibleexpenses to verify the types of expenses eligible for payment from your HSA.