Health Savings Account

Chemflex Investment Account

A Health Savings Account (HSA) is a tax-exempt account that offers flexibility and convenience while helping you invest more money for future medical expenses and help protect against high or unexpected medical bills.

Health Savings Account Frequently Asked Questions (FAQs)
  • Tax exempt account established for paying medical, dental and vision expenses
  • Functions in conjunction with a high deductible health care plan
  • Can serve as an investment or retirement account
  • Accumulate funds to pay health expenses tax free
  • Cover expenses for individuals, spouse and dependents

Anyone who is:

  • Under the age of 65
  • Covered under a high deductible health plan (HDHP)
  • Not also covered by any other health plan that is not an HDHP
  • Not enrolled in Medicare
  • Not claimed as a dependent on another person’s tax return
  • Plan contains minimum dollar limitations on the out-of- pocket expenses
  • Minimum annual deductibles are defined by the plan and are adjusted annually*
  • Annual maximum out-of-pocket expenses are defined by the plan and are adjusted annually*
  • Individually owned and controlled
  • Provides a way to pay expenses not covered by current medical plan
  • May lower individual’s health care costs
  • Contributions may remain in account from year to year until used
  • Interest or other earnings on the account are tax free
  • Distributions may be tax free for qualified medical expenses
  • Tax deductions when you contribute to the account
  • Tax-free earnings through investment
  • Tax-free withdrawals for qualified medical expenses
  • Account owner will need to keep record of receipts to provide proof to the Internal Revenue Service
  • Will receive monthly statement of account activity
  • Yes, but you will pay income tax and a 20% penalty for non-medical withdrawals prior to age 65
  • If 65 and older, withdrawals for non-medical purposes are treated as retirement income and subject to normal income tax but are penalty free
  • If you are presently not enrolled in Medicare benefits, you are still eligible to make contributions
  • Will be able to keep any remaining balance for out-of- pocket expenses, retiree health insurance premiums, as well as, Medicare premiums, deductible and co-payments
  • Any employed, unemployed or self-employed individual
  • An employer, a family member, or any other person may make contributions on behalf of the individual
  • No, there can be only one primary account holder
  • Both spouses may contribute to the same HSA or they each can choose to have their own HSA
  • If your spouse is named beneficiary they can access funds tax free for medical expenses and pay income taxes on non-medical expenses
  • If anyone else is named beneficiary they will generally owe income taxes when the assets transfer to them without penalty
  • No minimum balance or monthly maintenance fee
  • No charge for deposit
  • No charge for withdrawals
  • Cost of printed checks
  • $0-$500
  • $501-$2,500
  • $2,501-$10,000
  • $10,001+
  • By making contributions in person
  • Through an ATM
  • Internet Banking
  • Automatic transfer
  • Cannot be made in the form of stock or property
  • Amount depends on the type of HDHP coverage, single coverage or family coverage
  • Amount is the annual contribution amount as determined after being adjusted for cost-of-living changes
  • The maximum contributions are defined by the plan and are adjusted annually*
  • Individuals 55 and older can make additional catch-up contributions until they enroll in Medicare
  • Through checks
  • Using your HSA debit card
  • No limitations to the number of checks

* For amounts please refer to www.treas.gov