HEALTH SAVINGS ACCOUNT
What is an HSA?
A Health Savings Account (HSA) is a tax advantaged medical savings account that allows you to save for, eligible medical expenses. The HSA bank account is through Avidia Bank, a partner of MMO. You can choose to put funds in a savings account or invest once you’ve established a minimum balance. Your Health Savings Account belongs to you & you decide how & when to use the money. Avidia , your HSA bank, includes a debit card you can use to play for eligible expenses. You can use the money as soon as it’s deposited into the account, or you can let it accumulate to be used at a later date, even during retirement.
Great benefits for you
Convenience – Paying for expenses from your HSA is as easy as using a debit card.
Choice – Pay for qualified expenses from your HSA or save your HSA money and pay out of pocket.
Control – You decide how the money is spent and you have the freedom to keep it if you change jobs or retire.
Triple-Tax savings
Tax-Free Deposits – Even if you don’t itemize deductions you don’t pay federal income tax on your contributions.
Tax Free Savings – You keep any money you don’t spend and it grows tax free. No use it or lose it.
Tax Free Withdrawals – There’s never tax on withdraws to pay for qualified expenses.
You must complete an HSA payroll deduction form if you want to contribute. Both the employer and employee contributions cannot be more than the annual maximum allowed per calendar year.*
How much can you contribute? Use this worksheet to do the math…
| Type of Coverage | Individual | Family |
| *2021 Annual Maximum | $3,600.00 | $7,200.00 |
| Employer Contribution | $300.00 | $600.00 |
|
Age 55+ Contribution |
_________ | _________ |
| Your Maximum | _________ | _________ |
| Contribution per Pay (26) | _________ | _________ |
EXAMPLE
| Individual | Family |
| $3,600.00 | $7,200.00 |
| $300.00 | $600.00 |
| $0.00 | $0.00 |
| $3,300.00 | $6,600.00 |
| $126.92 | $253.85 |
EXAMPLES OF QUALIFIED MEDICAL EXPENSES
| Acupuncture | Diagnostic fees | Optometrists |
| Alcoholism treatment | Doctor’s fees | Orthodontia |
| Ambulance | Drug addiction recovery | Orthopedic shoes |
| Artificial limbs | Dyslexia language training | Oxygen/oxygen equipment |
| Braces | Eyeglasses and examination fees | Prescription Drugs |
| Childbirth preparation classes | Hearing aid and batteries | Psychiatric care |
| Chiropractors | Home modifications for handicapped | Therapy treatments (prescribed) |
| Contact lenses | Insulin | Vision correction surgery (e.g., LASIK) |
| Crutches | Laboratory fees | Vitamins (if prescribed) |
| Dental fees | Maternity expenses | Wheelchairs |
| Dentures | Nursing homes | X rays |
Who is eligible for an HSA?
To be eligible, you must meet the following requirements:
- Covered by a High Deductible Health Plan (the HSA plan offered by Ohio State Waterproofing
qualifies); - Not covered under another medical plan that is not a High Deductible Health Plan;
- Not enrolled in Medicare benefits; or
- You cannot be claimed as a dependent on someone else’s tax return.
When do I contribute to my HSA account, and how often can I?
- You or others can contribute to your HSA account through a payroll deduction(s) or as a deposit. You
can contribute as often as you like, provided the annual contribution limits do not exceed $3,600 for
individual coverage or $7,200 for family coverage in 2021. Keep in mind that this limit is inclusive of
contributions from any source, including the deposit you receive from Ohio State Waterproofing. - These limits are set by the IRS. If you are or will be age 55 or over during the calendar year, you may
also make a “catch up” HSA contribution of an additional $1,000. You can change your contributions at
anytime increase, decrease or stop them.
When can I start using my HSA dollars?
- Once you enroll in the HDHP and open and activate your MMO HSA account, you will receive a debit
card to access the funds in your account. You can then use your HSA dollars immediately once
contributions have been made. Present your card at the doctor’s office, pharmacy or other service
provider to pay for eligible health care expenses. Your bank account must be open before you incur a
claim in order for you to use these funds.
What if I enroll in an HSA in the middle of a year?
- If you enroll in an HSA in the middle of the year, you are allowed to make a full year’s contribution, provided that you remain covered by the HSA for at least the 12 month period following that year.
What if I have HSA dollars left in my account at year end?
- It is your money, so any funds left in your account will roll over to next year.
How do I manage my HSA?
- The HSA is your account and since you are the account holder, you manage and are responsible for
your HSA account. You can access your banking through MMO via online or via MMO’s app. You may
choose when to use your HSA dollars or leave them in your account for future medical expenses. Most
commonly, the HSA account holder will pay their out of pocket expenses (i.e. deductibles and
coinsurance) associated with their HDHP with their HSA dollars.
What expenses are eligible for reimbursement from my HSA?
- HSA dollars are not subject to federal tax as long as they are used to pay for eligible health care
expenses, including dental and vision, for you and your dependents. A comprehensive list of eligible
expenses is available online at www.IRS.gov in IRS Publication 502.
