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Empower HSA – manage your health & wealth
1 What is an HSA?
An HSA is a tax-advantaged account that helps people save for current and future medical expenses.
Unlike a flexible spending account, unused money automatically carries over year-to-year.
The HSA is yours to keep, even if you leave your job or change health plans, or retire.
2 Tax benefits of an HSA
Contributions, any earnings and withdrawals are federal income tax-free if used to pay for qualified medical expenses. State income taxes may still apply. HSA funds used for nonqualified medical expenses may be subject to applicable federal and state income taxes and/or penalties.
Contributions through payroll deductions are made on a pre-tax basis. Otherwise post-tax contributions are tax-deductible.
Withdrawals made for qualifying medical expenses are federal income tax-free.
Any investment growth is federal income-tax free.
3 Contribution limits
Contribution limits are determined by the IRS every year.
| 2019 | 2020 | |
|---|---|---|
| Individual | $3,500 | $3,550 |
| Family | $7,000 | $7,100 |
| Catch Up (55 and older) | $1,000 | $1,000 |
4 Ability to invest
Once your HSA balance reaches the designated investment threshold, typically $2,000, you may begin to invest in mutual funds. Any growth in your account is federal income tax-free if it’s used for qualified medical expenses.
5 Benefits of the Empower HSA
Maximizes your benefits by developing an integrated approach to save in both your HSA and retirement plan.
Helps you better prepare for your future with access to your estimated retirement healthcare cost and how much your HSA is on track to cover.
Helps you prepare for both current and retirement healthcare expenses.
Makes it easy to manage your medical expenses with online bill pay and receipt management.
6 HSA eligibility
You’re eligible to open and contribute to an HSA if:
Other restrictions and exceptions may apply. Consult your tax or financial advisor to discuss your specific situation.
If you don’t already have an Empower HSA, talk with your employer to see if you’re eligible.
You’re covered by a qualifying high-deductible health plan.
You have no other health coverage except what is permitted by the IRS.
You can’t be claimed as a dependent on someone else’s tax return.
You are not enrolled in Medicare.
Standard disclosure
Investors should read the prospectus carefully and consider the fund’s investment objectives, risks, charges and expenses before investing. Prospectuses can be viewed on the investment website or requested by contacting the fund directly.
Investing in certain funds involves special risks, such as those related to investments in foreign securities, small- and mid-capitalization stocks, and high-yield securities.
Investments are not FDIC insured, are not guaranteed by Optum Bank® and may lose value.
Securities offered by GWFS Equities, Inc., Member FINRA/SIPC, marketed under the Empower brand. GWFS is affiliated with Great-West Funds, Inc.; Great-West Trust Company, LLC; and registered investment advisers Advised Assets Group, LLC and Great-West Capital Management, LLC, marketed under the Great-West Investments™ brand. This material has been prepared for informational and educational purposes only and is not intended to provide investment, legal or tax advice. Educational, communication and operational services regarding Empower HSA may be provided by registered representatives of GWFS. By electing Empower HSA, plan participants are contracting directly with Optum and its affiliates for this service. GWL&A, or its subsidiaries or affiliates, is not responsible for the services offered by Optum. GWL&A, including GWFS, is not affiliated with Optum or Charles Schwab & Co., Inc., LLC.
Health savings accounts (HSAs) are individual accounts offered or administered by Optum Bank®, Member FDIC, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment and restrictions. Federal and state laws and regulations are subject to change.
Mutual fund performance data and ratings represent past performance and are not a guarantee of future results. Investment returns and principal value will fluctuate and investor’s shares, when sold, may be worth more or less than their original cost. All funds may be purchased at net asset value (NAV) without a front-end load. Redemption fees may apply. Mutual fund investment options are made available through the services of an independent investment advisor, and shares are offered through Charles Schwab & Co., Inc., LLC, a registered broker-dealer. Orders are accepted to effect transactions in securities only as an accommodation to HSA owner. Optum Bank is not a broker-dealer or registered investment advisor and does not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.
Optum Bank and its affiliates receive compensation for providing various services to the funds, including distribution (12b-1) and sub-transfer agent fees. All funds may be purchased at net asset value (NAV) without a front-end load. Redemption fees may apply. All Optum trademarks and logos are owned by Optum®. All other brand or product names are trademarks or registered marks of their respective owners. Because we are continually improving our products and services, Optum reserves the right to change specifications without prior notice. Optum is an equal opportunity employer.
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©2019 Optum Bank, Inc. All rights reserved.