A health savings account (HSA) is a financial account established by an individual or family to pay for qualified medical expenses tax-free. HSAs can be opened by an individual or offered by an employer alongside a high-deductible health insurance plan.
HSAs are similar to flexible spending accounts (FSAs), but with some major tax differences. With an HSA you can:
- Make 100 percent tax-free contributions.
- Withdraw funds tax-free for qualified medical expenses.
- Earn any interest or dividends tax-free.
- Defer taking any reimbursements indefinitely without penalties. (For example, you can use the money in retirement when your medical expenses might be higher.)
Can I use my HSA with my PeopleKeep account?
Your benefit includes a health reimbursement arrangement (HRA) through PeopleKeep. An HRA is a benefit used to reimburse employees tax-free for health insurance and other medical expenses like doctor visits, prescriptions, glasses, or even sunscreen. This saves you and your company an average of 35 percent in taxes compared with wages while giving you full control of your benefits.
To help you get the most out of PeopleKeep while complying with federal tax guidelines, we offer a customized (or limited-purpose) reimbursement benefit for those who contribute to an HSA during the calendar year.
Eligible employees of both an HSA and this benefit can be reimbursed for the following items:
- Health insurance premiums
- Dental expenses
- Vision expenses
- Wellness or preventive care
- Long-term care premiums