TULSA, OK –<\/p>\n
Many employees receive a Health Savings Account through their workplace benefits, but plenty of people still aren\u2019t sure how these
Some confuse HSAs with FSAs and worry their balance disappears at the end of the year. But unlike FSAs, HSA funds never expire. The money stays with you year after year, even if you change jobs or insurance plans.<\/p>\n
Still, understanding what you can use your HSA for \u2014 and what actions can jeopardize rollover status \u2014 is key to keeping your balance safe.<\/p>\n
To clear up the confusion, we spoke with Dr. Sarah Elneser, a doctor of osteopathic medicine, about what HSAs do, how to check your balance and what people should know before the end of the year.<\/p>\n
Below, she answers some of the most common questions:<\/p>\n
\n Q: What is an HSA?<\/p>\n
\u201cAn HSA is a health spending account,\u201d Elneser said. \u201cA lot of companies now when you sign up for your insurance policies through them and find out what your benefits are, they provide an option called an HSA where you can put some money into this account. It kind of helps with taxes on that money, and then you can use it throughout the year for your health required needs.\u201d<\/p>\n
She said HSA funds can be used for medications or certain appointments and are taxed differently than regular income.<\/p>\n
\n Q: Do employers contribute to your HSA?<\/p>\n
\u201cTypically on their own, depending on your company, some of them will go ahead and give you amounts. There\u2019s just a set amount. Some of them will match. Some of them, it\u2019s just allowing you to elect how much of your money you want to put in there from your income throughout the year,\u201d Elneser said.<\/p>\n
She noted that offerings vary widely by employer.<\/p>\n
\n Q: What should people spend their HSA money on?<\/p>\n
\u201cIt\u2019s always a good idea to sit down with your family and plan out, based on your health history, what you think your upcoming needs may be,\u201d Elneser said. She offered examples including glasses, medications, screenings, immunizations and certain over-the-counter supplies, depending on the employer\u2019s rules.<\/p>\n
\u201cThere are even some programs that do offer certain medical products, such as devices that measure your heart rate and your activity or your steps that you get throughout the day to kind of help toward your overall health,\u201d she said.<\/p>\n
But she emphasized: \u201cThe most important thing is to check before you purchase what is eligible on your HSA account. Every program is different.\u201d<\/p>\n
\n Q: Where can people check what their HSA covers and how much money they have?<\/p>\n
\u201cUsually on your insurance card it will have a website that you may be participating in with an insurance company, or at the very least, a phone number on the back of that card that you can call,\u201d she said. Both options allow employees to verify their balance and eligible expenses.<\/p>\n
\n What You Can Use Your HSA Funds For<\/p>\n
As long as your spending falls under IRS-approved medical expenses, your money rolls over and remains tax-free. Some qualified expenses include:<\/p>\n
Doctor visits, specialist visits, and urgent carePrescription medicationsOver-the-counter medications and common pharmacy itemsDental work, cleanings, fillings, braces, and denturesVision exams, glasses, contacts, and LASIKPhysical therapy, chiropractic care, and mental health services<\/p>\n
If the IRS considers it a medical expense used to diagnose, treat, or prevent a condition, or a doctor approves, it\u2019s typically eligible.<\/p>\n
As long as you stick to these qualified uses, your money stays protected and continues rolling over indefinitely.<\/p>\n
\n What NOT to Do if You Want Your HSA Funds to Roll Over<\/p>\n
\n 1. Do NOT transfer your HSA into a different type of account.<\/p>\n
You cannot roll HSA money into an FSA, HRA, 401(k), or any other account. Doing so is treated as a non-qualified distribution \u2014 not a rollover.<\/p>\n
\n 2. Do NOT use HSA money for non-qualified expenses.<\/p>\n