Health Savings Account
Take Charge of Your Healthcare Spending
A UFirst Health Savings Account (HSA) allows you to set aside pre-tax money to pay for qualified medical expenses. You can use an HSA to pay for expenses such as deductibles, copays, coinsurance and other eligible medical expenses, and can help lower your out-of-pocket healthcare expenses.
Benefits of a UFirst HSA
- Tax-deductible contributions
- Tax-free growth
- Tax-free earnings on investment
- Tax-free withdrawals for qualified medical expenses
- Ownership is yours regardless of change in employment or health plan
- No monthly maintenance fee
- Free debit card
- Convenient expert help in UFirst branches
Enroll in a UFirst HSA!
Are you interested in healthcare savings or a business owner considering offering an HSA to your employees?
Your Financial Safety Net
An HSA is a tax-advantaged account that helps you save for qualifying medical expenses not reimbursed by a high-deductible health plan (HDHP.) You contribute pre-tax dollars, lowering your taxable income while building a cushion for qualified healthcare expenses.Who is Eligible?
- Anyone covered by a qualified HDHP
- Have no other health coverage
- Not enrolled in Medicare
- Not claimed as a dependent on someone’s tax returns
How much can you contribute to an HSA?
- 2024 individual maximum contribution is $4,150
- 2024 family maximum contribution is $8,300
- Catch up contributions for individuals aged 55 and older is $1,000
- Unused balances carry over to the next year
What can an HSA be used for?
- Prescriptions
- Medical equipment
- Deductibles
- Dental cleanings
- Eyeglasses
- And more!
Take charge of your healthcare spending and save for future expenses. Enroll in a UFirst Health Savings Account today!
Frequently Asked Questions
What is a
qualifying medical expense?
Examples of a qualifying medical expense are doctor visits, medical equipment, prescription, dental, and vision care. To see a complete list of qualifying medical expenses from the Internal Revenue Service, click here.
Is there a minimum
amount that I must contribute?
No, but you can contribute up to the IRS HSA maximum limit to take advantage of the tax benefits of the HSA.
Are my funds available January 1st like my cafeteria plan
(FSA)?
Funds in HSAs are not available to be used until they are deposited into the account. Typically, payroll contributions are deposited throughout the year on a bi-weekly/monthly basis. It is always possible to fund the HSA yourself in addition to employer contributions and fund it any day you wish.
What happens to my HSA if I switch plans next
year?
You will no longer be able to contribute to the HSA, but you can still use the funds in the account to pay for your medical expenses.
What happens to my
HSA when I leave my job?
The money belongs to you and not your employer. It will remain in your HSA for you to use. You can also transfer your HSA from one custodian to another.
Can I pay for my
spouse and children's expenses?
Yes, in addition to your spouse, you can spend your HSA dollars on your children or any other dependents you can claim on your federal tax return. You can even pay for spousal and dependent expenses if they are not covered on your health plan.
How do I change the amount
of my
HSA?
If you have payroll contributions, this is at your employer's discretion. You can always contribute any amount you want outside of payroll contributions up to your annual maximum.
What if I use funds
on a non-qualified expense?
Any part of a distribution not used to pay for qualified expenses becomes taxable and is subject to an additional 20% penalty unless an exception applies.
The good news is that at age 65, you can take the distribution as taxable income without a 20% penalty.
If I don’t have funds available, can I reimburse myself
later?
Yes. There’s no time limit on when you can reimburse yourself. If you had an HSA when you incurred the expense, you can reimburse yourself at any time. It makes no difference how much time has passed.
In fact, a good way to maximize your benefits is to pay for your qualified medical expenses out of your UFirst Visa Rewards card and transfer the funds from your HSA to pay it off. This way you get rewards points and the tax benefits of the HSA.
Do I need to submit my receipts when I file my
taxes?
No. You should always keep your receipts in case of an IRS audit. You can keep physical or electronic copies of the receipts.
HSAs are not taxed at a federal income tax level when used appropriately for qualified medical expenses. It is the member’s responsibility to determine if a transaction is a qualified medical expense. Most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules. UFirst does not provide legal, tax or financial advice. Members should seek the services of a tax professional regarding their specific tax situation.