What is an HSA?
- A Health Savings Account, or “HSA,” is a triple-tax advantaged program. Contributions are made on a pre-tax basis, money in your account grows tax-deferred, and withdrawals used for eligible health related expenses are income-tax free.
- All contributed monies (even your employer) are yours and remain in your personal account, even if you leave your employer. You must be enrolled in a qualified, deductible-based health plan to make contributions but withdrawals are allowed at any time. You can even use your deferral to pay for long-term care policies or Medicare Supplemental plans.
- At age 65 you can withdraw the money for anything non-medical related and just pay normal income tax on the withdrawn amount.
- VantagePoint’s proprietary mutual fund menu allows you to direct your account balance (over $1,000) into any of these funds for potential additional growth
How do I fund my HSA?
There are two ways to fund your HSA:
- Via regular payroll deductions, determined by you during open enrollment. Your employer will deduct in equal portions from your paycheck, on a pre-tax basis throughout the plan year. This deduction amount can be changed at any time!
- Direct contributions. You can contribute additional funds to your HSA at any time. This can be done via check or EFT transfer to your VantagePoint HSA Today Account. While these contributions aren’t immediately tax-free, they can be deducted on your tax return.
- Unlike an FSA, you only have access to the available balance in your account at the time of swipe. Your HSA does not fully fund on the first day of the plan year.
How much can I fund my HSA?
- For 2022, the annual contribution limits are: $3,650 if covered by an individual qualified deductible-based plan or $7,300 if you are covered by a family.
- If you are age 55 or older as of December 31, 2022, you may contribute an extra $1,000 as a catch-up deduction under both individual and family policies for 2022
- These limits are set by the IRS and may change year to year.
Do I need to submit for Claim Reimbursement?
- IRS rules allow for ‘self-substantiation’. No claim submission to VantagePoint is required. However, it is important to maintain all HSA-related receipts and provide as backup when completing your tax return. You may store all your receipts electronically in VantagePoint’s secure Online Claims Vault.
- In most cases, VantagePoint Debit card transactions for eligible expenses are automatically approved. But please remember to always save your receipts from your card transactions as they may be necessary to verify the eligibility of an expense.
What kinds of expenses are covered under an HSA?
- You would be surprised how many items are eligible. Office visit co-payments, Rx expenses, dental work, eyeglasses and contact lenses are just a few examples
- In most cases, VantagePoint Debit card transactions for eligible expenses are automatically approved. But please remember to save your receipts from your card transactions as they may be necessary to verify the eligibility of an expense.
- See our list of eligible expenses for review. Please note the IRS determines which expenses are eligible, and some expenses require a doctor’s note or prescription to be eligible for reimbursement
