FSA & HSA

Want funds handy to help cover out-of-pocket healthcare expenses? A Health Savings Account (HSA) with WEX is a personal healthcare bank account used to pay for qualified expenses. HSA contributions and withdrawals for qualified healthcare expenses are tax-free. You must be enrolled in the Healthy Savings Plan to participate.

• You are enrolled in the Healthy Savings Plan (HDHP).
• You are not covered by your spouse/domestic partner’s or parent’s non-HDHP.
• You do not or your spouse/domestic partner does not have a Healthcare Flexible Spending Account or Health Reimbursement Account.
• You are not eligible to be claimed as a dependent on someone else’s tax return.
• You are not enrolled in Medicare or TRICARE.
• You have not received Department of Veterans Affairs medical benefits in the past 90 days for non-service-related care. (Service-related care will not be taken into consideration.)

• HSA contributions are made through payroll deduction on a pre-tax basis when you open an account with WEX. The money in your HSA (including interest and investment earnings, if any) grows tax-free. When the funds are used for qualified medical expenses, they are spent tax-free.*
• You can save and roll over HSA funds to the next year if you don’t spend them all in the calendar year.
• There are no vesting requirements (you own all contributed HSA funds immediately) or forfeiture provisions (you keep all HSA funds whether you leave the company or retire).
• HSA funds are also portable if you change plans or jobs.
• Per IRS regulations, if HSA funds are used for purposes other than qualified medical expenses and you are younger than age 65, you must pay federal income tax on the amount withdrawn, plus a 20% penalty tax. This is why it’s important to know what medical expenses qualify for HSA use and to keep track of where you spend your HSA funds.
• *State income taxes are also waived on HSA contributions in almost all states.