HSA

Looking for the most cost-effective health care for you and your family? Think about enrolling in a health savings account (HSA). An HSA allows you to set aside tax-free money to pay for medical expenses, save for retirement or even invest! Watch the video for a quick summary of an HSA.

Click here to learn how to register online.

FAQ’s

  • A health savings account (HSA) is a tax-advantaged account that works in conjunction with an HSA-eligible health plan that meets IRS guidelines and allows the participant to save tax-free money for eligible medical expenses. Money in an HSA rolls over year after year and is owned by the participant even if they change jobs or health plans.

  • Any out-of-pocket and unreimbursed medical expenses allowed under section 213(d) of the Internal Revenue Code, including medical premiums (under limited circumstances) and long-term care expenses. A complete list can be found at hellofurther.com

  • Contributions to an HSA can come from the account holder, the employer or both. The HSA contribution limits for individual or family health plans change annually and are as follows:

    Tax Year 2024:
    - Individual - $4,150
    - Family - $8,300

    Once age 55, members can contribute an additional $1,000 towards their HSA.

  • Account holders receive a “triple tax benefit:”

    - Taxable income reduction: Contributions to their HSA are pretax, which lowers their taxable income and stretches their dollars further.

    - Tax-free earnings: Further offers competitive interest rates and investment options for eligible HSA plans. This growth is never taxed.

    - Tax-free distributions: The funds in their HSA are not subject to taxation when they are used to pay for eligible expenses.

  • The account holder can leave their entire HSA balance at Further, where it earns interest, or choose to invest a portion of it. Once an HSA base balance exceeds $1,000, the account holder can open a basic, self-directed investment account, Fact sheet: Health Savings Accounts (HSAs) giving them access to more than 30 no-load and load-waived pre-selected mutual funds. At least $1,000 must be kept in the base balance of the HSA account. A wide variety of pre-selected mutual funds are offered by Further through Devenir Investment Advisors, LLC, a registered investment advisor and Further’s investment advisor for the optional investment program. In addition, when the basic investment account balance exceeds $10,000, the account holder can open a self-directed brokerage investment account with Charles Schwab. This account allows access to more than 2,500 mutual funds from a variety of fund families, as well as stocks, bonds and other investments.

  • Yes, Further offers FDIC-insured account options.

  • Yes. A Visa® Debit Card is available for eligible medical expenses, and can be used at the point of purchase or after care.

Myth vs Fact

  • Fact: It would make sense to think that this type of plan is for the wealthy because of the higher deductible that must be met before your insurance begins to pay. However, that’s not necessarily the case. Qualified high-deductible health plans are paired with an HSA, so they can be cost-effective because they generally have lower premiums than traditional plans. One way to fund your HSA account is to put this premium savings into your HSA right away so you are prepared for future health-related expenses. So, maybe HDHPs and HSAs are for savers, but you don’t have to be wealthy — you just need to plan ahead.

  • Fact: HDHPs and HSAs could benefit you no matter where you fall on the health spectrum. If you rarely use health care services, then you may enjoy the lower premiums often offered with an HDHP. However, if you seek health services regularly, then you may hit your deductible fairly quickly, allowing you to pay coinsurance until you reach your out-of-pocket maximum. Once your out-of-pocket maximum is met, your health plan will pay the full cost of health care services you receive. So, HDHPs and HSAs can be an option for you whether you have a small or a large amount of expected health care expenses — you just need to be prepared.

  • Fact: HDHPs and HSAs are useful at any age. HSAs do offer long-term investment opportunities, which can benefit the young who have time to make the most of the opportunity to accumulate savings. But, if you are 55 or older and are looking to accelerate your retirement savings, an HSA allows you (and a spouse) to make "catch-up" contributions of up to an additional $1,000 per year (each) to your HSA until you reach the age of 65. These catch-up contributions can quickly add up within your HSA.

  • Fact: One of the many benefits of an HDHP is that you get to decide how much to save in your HSA, and how and where you spend your health care dollars. You often have the same coverage as a traditional plan, you just pay for health care services in a different way. It’s important to know that preventive care such as annual physicals, well-child exams and cancer screenings, like mammograms, are typically covered by your health plan. This is even the case when you have not reached your out-of-pocket maximum or deductible limits under a high-deductible health plan. This means you don’t have to pay out of pocket for preventive care.