Benefits of a Health Savings Account

• Change jobs
• Change medical coverage
• Become unemployed
• Move to another state
• Get married or divorced

5. With an HSA, you decide:

• How much you will contribute to your account
• When you want to use your savings to pay for or reimburse yourself for eligible medical expenses
• What bank will administer your account
• Whether or not to invest some of your savings in mutual funds for greater potential long-term growth

Depositing and Withdrawing Funds

When you fill out an application to open an HSA, you can usually arrange to make an initial deposit. You can do this by transferring money from another bank account, or you can send the bank a check or money order with a contribution/deposit form.

If your employer offers payroll deduction, you may elect to have an amount deducted pre-tax from your paycheck and deposited directly into your HSA. This contribution will be made before Social Security, federal and most state income taxes are deducted.

Some institutions will provide you with a debit card that you can use at a doctor’s office or pharmacy. You also have the option of paying out of pocket and then reimbursing yourself from your HSA later.