Health Savings Account (HSA) Guide

Health Savings Account (HSA) at BetterHealth

A Health Savings Account (HSA) is a tax-advantaged savings account for employees enrolled in the High Deductible Health Plan (HDHP).

HSA Benefits

• Triple Tax Advantage:
  • Contributions are pre-tax
  • Growth is tax-free
  • Withdrawals for qualified medical expenses are tax-free
• Roll Over: Unused funds carry over year to year
• Portable: Account stays with you if you leave BetterHealth
• Investment Options: Invest balances over $1,000

Eligibility

You must be enrolled in BetterHealth's HDHP to contribute to an HSA.

You are NOT eligible if you:

• Are enrolled in another health plan (including spouse's)
• Are claimed as a dependent on someone else's tax return
• Are enrolled in Medicare
• Have received VA benefits in the last 3 months

Contribution Limits (2024)

Coverage Type	IRS Limit	BetterHealth Contribution	You Can Contribute
Individual	$4,150	$750	Up to $3,400
Family	$8,300	$1,500	Up to $6,800
Catch-up (55+)	+$1,000	N/A	Additional $1,000

How to Enroll

1. Enroll in HDHP during open enrollment or as new hire
2. HSA automatically opened with HealthEquity
3. Set contribution amount in UKG
4. BetterHealth's annual contribution deposited in January
5. Your contributions deducted pre-tax from each paycheck

What Can You Use HSA Funds For?

Qualified Medical Expenses:

• Doctor visits and copays
• Prescription medications
• Dental and vision care
• Medical equipment and supplies
• Mental health services
• Chiropractic care
• Physical therapy
• Over-the-counter medications (with prescription)

Not Covered:

• Cosmetic procedures
• Gym memberships (unless prescribed)
• Insurance premiums (with exceptions)

Using Your HSA

• HSA Debit Card: Use for point-of-sale purchases
• Online Bill Pay: Pay providers through HealthEquity portal
• Reimbursement: Pay out-of-pocket and reimburse yourself later
• Save Receipts: Keep for tax purposes (may be audited by IRS)

Investment Options

Once your HSA balance reaches $1,000, you can invest funds:

• Mutual funds
• Target-date funds
• Index funds
• Keep minimum cash balance for near-term expenses

HSA vs FSA

Feature	HSA	FSA
Eligible Plans	HDHP only	Any plan
Rollover	Unlimited	$640/year max
Portable	Yes	No
Employer contribution	Yes ($750-$1,500)	No
Investment option	Yes	No

Managing Your HSA

• Provider: HealthEquity
• Website: healthequity.com/betterhealth
• Mobile App: Available for iOS and Android
• Customer Service: 1-866-346-5800

Tax Reporting

• Form 5498-SA: Shows contributions (sent in May)
• Form 1099-SA: Shows distributions (sent in January)
• Form 8889: File with your tax return to report HSA activity