Total Administrative Services Corporation (TASC)

• HSA Participant Benefits
• What is an eligible HSA expense
• HSA FAQ
• HSA Deduction Calculator

What is a Health Savings Account (HSA)?

If you are enrolled in the High Deductible Health Plan, you are eligible to participate in a Health Savings Account (HSA) through TASC.

An HSA allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for healthcare expenses or as a retirement savings tool. This plan offers more tax savings than a traditional 401(k) or Roth IRA, making it a powerful option for diversifying your retirement portfolio.

The IRS allows you to contribute the maximum annual contribution as long as you remain eligible through December 31 of the following year. If you are concerned that you may not remain eligible for the entire period, you may wish to prorate contributions based on the number of months you are HSA eligible.

Understanding the High Deductible Health Plan

On a high deductible health plan (HDHP), when you need care, you pay for most services out of your pocket until you reach your deductible. One exception is in-network preventive care covered under the ACA which is covered at 100% on a HDHP. The out-of-pocket maximum is the most you’ll pay in a plan year for services covered by your plan. Once this limit is reached, the plan pays 100% for covered services for the rest of the year.

Is the HDHP Right for Me?

Consider the following when choosing a health plan:

• If you’re healthy and usually go to the doctor once a year, a lower monthly premium may be a good choice for you.
• If you often visit your primary care provider or specialist(s) during the plan year, you must decide if savings from low premiums are greater than the cost of regular care or medication.

By participating in the HDHP, you are also eligible to contribute to a Health Savings Account (HSA). An HSA allows you to set aside pre-tax money each paycheck in order to pay for medical care.

What’s the Difference Between an HSA and an FSA?

A Health Savings Account (HSA) and a Medical Flexible Spending Account (FSA) are both used to set aside pre-tax dollars in order to pay for qualified medical expenses. You can save money with either, but they have many differences. Here is a brief outline:

	HSA (Option 1)	FSA (Option 2/Option P)
Owner	Employee-owned	Employer-owned
Eligibility	Must be enrolled in a high deductible health plan (HDHP)	Anyone is eligible, although you can't be enrolled in an HSA and a Medical FSA
Carryover	All funds carryover from year to year	Unused funds do not carry over from year to year*
Portability	The HSA is portable, so the funds in the account stay with you wherever you go	FSAs are employer-owned accounts, so the funds are forfeited if your employment ends
Investment Options	You can invest HSA funds	You can't invest HSA funds
Documentation	It's not required, but you'll want to keep all documentation in case you're ever the subject of an IRS audit	The IRS requires documentation for some FSA expenses to show the eligibility of the expense
Availability of Funds	Only the funds that have been contributed are available to cover expenses	All funds for the plan year are available on January 1

* Except for the amount the IRS allows.