Now, let’s talk more about the Health Savings Account or HSA.
For an individual, Liberty will contribute $500 to the HSA in 2020. For a family with two or more members, the contribution is $1,000. That’s tax-free money you can use to pay for health expenses today or in the future. The entire contribution appears in your HSA toward the end of January 2020.
You can also contribute to your HSA on a tax-free basis through easy payroll deductions, up to the IRS maximum, and can change your contributions at any point during the year. The maximum is based on your age, and your contributions, combined with Liberty Mutual’s contribution.
With an HSA – you get three tax advantages!
First: Any money going into your HSA is before-tax – that includes your contributions and the company contribution.
Second: You can invest your money – and that growth is tax-free.
Third: Your money can be withdrawn – tax-free – to pay eligible health care expenses.
You can use your HSA to pay for most out-of-pocket health expenses: things like prescriptions, vision care services and dental services – including orthodontia!
HSA dollars, however, can’t be used to pay for premiums.
Try putting into your HSA at least the amount of your deductible.
And - with an HSA, your entire account balance carries over from year-to-year. Even if you leave Liberty, the HSA dollars are yours to keep.