How does an HSA work?
• Basic Overview: • To be eligible to contribute to an ACS/Mellon HSA, you must be covered by a qualified high deductible health plan (HDHP) and have no other first dollar coverage. • You may use your HSA to help pay for medical expenses covered under a high-deductible health plan, as well as for other common qualified medical expenses. • HSA funds unused remain in your account for later, and can be invested in a choice of investment options, providing the opportunity for funds to grow. HSAs work in conjunction with a HDHP. All the money you (or your employer) deposit into your HSA up to the maximum annual contribution limit is 100% tax-deductible for federal income tax, FICA (Social Security and Medicare) tax, and in most states, state income tax. This makes HSA dollars tax-free. You can use these tax-free dollars to pay for expenses covered under your HDHP until you have met your deductible. The insurance company pays covered medical expenses above your deductible, except for any coi
(Back to top) • Funding. You and your employer may contribute to your HSA on a pre-determined schedule throughout the year. (Please contact your Human Resources office for a copy of your employer’s contribution schedule if applicable). • Accessing Funds. When you have an eligible healthcare expense, pay for them with your healthcare payment card, or pay out-of-pocket and request reimbursement online. Remember to always keep your receipts. Even if they are not needed for substantiation, you may need them for an IRS audit. • Requesting Reimbursement. If your payment was out-of-pocket, you will need to submit a request for reimbursement. Log on to your online account and visit the Account Claim Center. • Reimbursement Processing. We will promptly process your request and reimburse you either by check or direct deposit if you sign up for that feature. Please note that you will receive your money sooner if you use direct deposit. See Claims FAQs for more information. • Account Management. L
The amount you contribute is generally not taxable. Funds in your HSA earn interest tax-free. This reduces your taxable income and, potentially, your tax liability. Consult your tax advisor to determine how your HSA affects your unique tax circumstances. When you use your HSA to pay for qualified medical expenses, you do not have to pay taxes on the funds you withdraw.
The amount you contribute is generally not taxable. Funds in your HSA earn interest tax-free. This reduces your taxable income and, potentially, your tax liability. Consult your tax advisor to determine how your HSA affects unique tax circumstances. When you use your HSA to pay for qualified medical expenses, you do not have to pay taxes on the funds you withdraw.
