afhsa.americanfidelity.comHSA Support | American Fidelity

Skip to main content File a Claim Login File a Claim Login Strategy Employee Benefits Communication and Education Enrollment and Admin HR Assistance Tax Savings Compliance Products Benefits Dependent Verification HR Technology Reimbursement Accounts Retirement Savings Section 125 Stop Loss Insurance Why Us For Education For the Public Sector For Automotive Account Managers Customer Testimonials Blog Support Login Help Employer Assistance Videos Contact Us Claims Insurance Claims FSA Reimbursement HSA Reimbursement Login Health Savings Account Customer Support Get answers to frequently asked questions, how-to videos, and tips for managing your Health Savings Account (HSA). Learn How to File an HSA Reimbursement HSA Eligible Expenses Login How to Use Your HSA If your employer offers a High Deductible Health Plan, now’s the time to learn more about HSAs. Selecting the right coverage for you and your family is important, and we want to help you understand your benefit options. Learn More About HSAs Health Savings Account FAQs General FAQs What is a Health Savings Account? A Health Savings Account (HSA) allows eligible individuals who are covered by a qualified High Deductible Health Plan (HDHP) to pay for eligible medical expenses of the eligible individual, his/her spouse, and his/her tax dependents. An HSA helps you pay for the medical expenses not covered by your HDHP—tax-free. What is a qualified High Deductible Health Plan (HDHP)? To contribute to an HSA, generally, you may only have health coverage under a qualified High Deductible Health Plan (HDHP). A qualified HDHP usually has a higher annual deductible than a typical health insurance plan. Additionally, there is a maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that an individual must pay for covered expenses. What are the benefits of an HSA? HSAs offer the benefit of tax-advantaged savings and reduced taxable income, regardless of your income level. Individuals may set aside income tax-free and build assets that they can use in their retirement years; and/or reduce their medical costs right now. HSAs afford you several tax advantages: Tax-free contributions Tax-free growth Tax-free distributions for eligible medical expenses You “own” the account: Balances roll over from year to year, there’s no “use or lose” requirement Even if you change jobs, change medical coverage, become unemployed, move to another state, or change your marital status, your HSA goes with you! Flexibility: HSA dollars may pay for eligible medical expenses as defined by the Internal Revenue Code. Eligible medical expenses would include deductibles, co-payments, dental, vision expenses, or doctor appointments, as long as these expenses are not covered by other insurance. What happens to my HSA if I switch employers? Your HSA is your account, and you may take it with you wherever you work. If you participate in a qualified HDHP at your new employer, you may continue contributing to your HSA. If your employer has an HSA set up under a Section 125 Plan, you may continue to contribute on a pre-tax basis through payroll deduction. If your employer does not offer an HSA, you may no longer contribute to your HSA. However, you may still use your remaining HSA funds to pay for eligible medical expenses. What if I am no longer covered by a qualified HDHP? If you are no longer covered under a qualified HDHP, you may no longer contribute to your HSA. However, you may still use your remaining HSA funds to pay for eligible medical expenses. Can my HSA be used to pay premiums? Generally, HSA funds may not be used to pay for health insurance premiums tax-free. However, there are exceptions for some premiums where distributions are considered eligible. You may use your HSA funds to pay for health insurance premiums if you are collecting Federal or State unemployment benefits, if you have COBRA continuation coverage through a former employer, or have Medicare part A, B, C, or D (supplemental medical coverage premiums do not qualify). Do the funds in an HSA roll over? Yes! Unused funds roll over year to year, so you will not lose any money you don’t use. Can you have more than one HSA? Yes, you can have more than one HSA. You must be covered by a qualified HDHP to contribute to them, and your contributions combined must not exceed the annual maximum limit. What can I purchase with my HSA? The funds you withdraw from your HSA are tax-free when used to pay for eligible medical expenses. Refer to the HSA Eligibility List for a comprehensive look at many of the items covered by an HSA. Do HSAs cover anything not covered by a Healthcare Flexible Spending Account (HCFSA)? Yes, in addition to covering the same items as an HCFSA, HSAs will also cover COBRA and long-term care expenses. Can HSA funds be invested? An HSA offers significant tax advantages and provides opportunities to invest in mutual funds. If you’re looking for an additional way to plan for retirement, an HSA may provide you with another means to save for your retirement goals. When to invest your money Account holders can choose to invest their funds in a variety of options. A minimum balance of $2,500 must be maintained in the HSA before investing. InvesTrust , a member of the American Fidelity family, serves as the custodian for all investments made through your HSA. Complete an Investment Fund Election Form You will not be charged fees to invest, however, fees associated with certain funds may be incurred. We recommend you review the fund’s prospectus for additional information when choosing an investment option. Where to invest your money American Fidelity Assurance Company provides no-load mutual funds that cross all investment risk tolerances, such as American Funds, AIM, Vanguard, and Morgan Stanley. You pick the mutual fund that best suits your needs and risk tolerance from our selected list. View Investment Fund Listings What happens to my HSA when I die? Upon the death of an HSA account holder, any amounts remaining transfer to the designated beneficiary. If the beneficiary is the surviving spouse, then the spouse becomes the account holder of the HSA and the transfer is not taxable. Any distributions that are used for non-eligible medical expenses are subject to income tax. If the beneficiary is someone other than the deceased account holder's surviving spouse, then the HSA ceases to be an HSA and is subject to income tax. What are the rates and fees of an HSA? Interest Rates & Annual Percentage Yield (APY) 1 Daily Balance Rate APY $0.00 - $500.00 0.00% 0.00% $500.01 - $2500.00 0.09% 0.09% $2500.01 - $5000.00 0.12% 0.1201% $5000.01- $10000.00 0.15% 0.1501% $10000.01+ 0.25% 0.2502% Fees Service Fees Set-up Fee 2 (one time or waived with electronic enrollment) $10.00 Monthly Maintenance Fee 3 $2.00 Withdrawal Processing Fee Included Manual Distribution Form $10.00 Deposit Item Return, Excess Contribution Withdrawal, Mistaken Distribution Return, Stop Payment $15.00 Investments (stocks, mutual funds) 4 Included Trade Fees Included Quarterly Statements Included Reissue of Reimbursement Check, Corrected IRS Filing Fee/copy, Rollover/Transfer, Wire Transfer, Account Closure, Research on Account/Debit Card Transactions $25.00 Miscellaneous Fees 5 (if applicable, fee is charged per transaction) Per Transaction 1 This is a variable rate account. The interest rate is subject to change daily at our sole discretion. Your entire balance will earn the interest rate in effect for the balance associated with your daily balance. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Interest will be computed daily. This interest will then be compounded monthly and will be credited to your account within five business days after the previous month. If you close your account before interest is credited, you will not receive the accrued interest. 2 ...