SimplyHSA Help


SimplyHSA FAQs

Answers to Frequently Asked Questions.

Q

What is a Health Savings Account (HSA)?

A

An HSA is a tax-advantaged personal savings account that can be used to pay for medical, dental, vision and other qualified expenses, now, or later in life. To contribute to an HSA you must be enrolled in a qualified high-deductible health plan (HDHP). The funds can even be invested, making it a great addition to your retirement portfolio.

Q

What is a high-deductible health plan?

A

A high-deductible health plan is a health insurance plan with deductible amounts that are greater than standard insurance plans. Monthly premiums are typically lower than standard health plans. In HDHP plans, individuals take on more of the up-front costs of health care.

Q

Am I eligible to participate in an HSA?

A

In order to contribute to an HSA, you must:

  • Be enrolled in a qualified HDHP
  • Not be covered under a secondary health insurance plan*
  • Not be enrolled in Medicare

AND

  • Not be a dependent on another person’s tax return

*For example, by a spouse that has full FSA or full HRA benefits.

Q

How does an HSA work?

A

Participants can use SimplyHSA funds to pay for eligible health care expenses. These funds are always tax-free. SimplyHSA can be used for eligible health care expenses that were incurred any time after the account was established. Participants can even use it for expenses that are incurred after the participant is no longer eligible to make SimplyHSA contributions.

Q

How do I access the funds in my SimplyHSA?

A

Payments can be made via:

  • ACH
  • Online bill-pay
  • Check
  • Benefits Card* to pay at point-of-sale
 OR
  • Pay out-of-pocket and then reimburse yourself from SimplyHSA
You are responsible for ensuring the money is only spent on qualified health care purchases. You do not need to submit any receipts or documentation. However, is a good idea to save health care bills and documentation. Maintaining great records to be able to withstand IRS scrutiny in the event of an IRS audit.

*Depending on what is available to you.
Q

What kinds of expenses are eligible using SimplyHSA?

A

You can use SimplyHSA to pay for a wide range of eligible medical expenses:

  • Health plan co-pays
  • Prescriptions
  • Deductible costs
  • Co-insurance
  • Vision care
  • Dental care
  • Certain medical supplies
  • See specific guidance regarding eligible expenses in IRS Publication 502.
Q

Why should I participate in SimplyHSA?

A

Funds contributed to SimplyHSA provide triple tax-advantaged savings, by reducing Federal, State and FICA taxes.

  • Money goes in tax-free.By using payroll deductions through your employer, you contribute to your HSA before any taxes are applied to your paycheck. The tax savings are immediate.
  • Money comes out tax-free. Eligible health care purchases can be made tax-free when your use your SimplyHSA.
  • Earn interest, tax-free. Interest on SimplyHSA funds grows on a tax-free basis. Unlike most savings accounts, interest is not considered taxable income as long as the funds are used for eligible health care expenses.
Q

How do I contribute money to my SimplyHSA?

A

Your employer provides pre-tax payroll deduction. Your annual contribution will be divided into equal amounts and deducted before taxes. You may also contribute directly from your personal checking account. (When contributing directly, you may wish to deduct accordingly on your personal income tax return.)

Q

How much can I contribute to my SimplyHSA?

A

There are IRS yearly limits to how much you can contribute to an HSA. For 2017, annual contributions to SimplyHSA must be less than $3,400 (single) or less than $6,750 (family). Your contributions plus your employer’s contributions, plus any other contributions added together must not exceed the yearly limits. Individuals age 55 or over may contribute an additional $1,000 in “catch-up” contributions.

Q

Do I need to spend all my SimplyHSA funds by the end of the plan year?

A

No.  SimplyHSA money is yours to keep. Unlike a flexible spending account (FSA), unused money in your HSA is not forfeited at the end of the year. You keep the money and it continues to grow.

Q

Can I change my contributions to my SimplyHSA during the year?

A

Yes, if your employer’s rules allow it. You may make changes to your HSA contributions through your employer using the applicable notice of change from your employer. Be sure that the total amount of contributions you make in a year does not exceed the annual contribution limits. (See above: “Q) How much can I contribute to my SimplyHSA?”)

Q

What is a bank disclosure notice?

A

You will receive a bank disclosure notice if you are a new SimplyHSA participant. A Health Savings Account works with a secure financial institution. Financial institutions are required by law to provide specific information to accountholders. You may view this information in an email you will receive by clicking on the link provided.

Q

Why would I receive an email asking for more information to establish my identity?

A

Establishing your identity protects the security of your account. Your SimplyHSA account cannot be opened until you provide information to establish your identity. Follow the steps in the email to complete the identification process.

Q

What happens if my employment is terminated?

A

If your employment status changes, SimplyHSA moves with you because HSAs are portable! Your SimplyHSA belongs to you, just like your personal checking account. Employee Benefits Corporation will continue to be your source of information regarding your HSA. If your employment terminates, you can expect a NEW Benefits Card in the mail for your SimplyHSA. You will also receive a welcome email with additional information and next steps.

Q

What happens if I no longer have HDHP health coverage?

A

If you discontinue your HDHP coverage and/or get secondary health insurance coverage that disqualifies you from an HSA, you can no longer make contributions to your SimplyHSA. However, you can continue to use the remaining funds for health care expenses!