How to contribute to your
Lane Health HSA
Contribute pre-tax dollars to your HSA
Health Savings Accounts (HSA) offer a triple-tax-advantage and lower premiums! An HSA allows you to set aside pre-tax dollars to pay for qualified medical expenses. If you are a participant in a high-deductible health plan (HDHP), you are eligible to take advantage of these tax savings:
- Money contributed is tax-free
- Interest and investment earnings are tax-free
- Withdrawal of money is tax-free when made for eligible health care expenses
Since it is a savings account, you are encouraged to save more money than you spend. Funds roll over, earning interest along the way. The account is portable making it an ideal savings vehicle for you to carry with you into retirement. Enroll in an HSA for the security of your health now all the way through your golden years. Whether you withdraw the money tomorrow, five years from now, or in retirement, funds used for qualified health care expenses are always income tax free.
HSA contribution rules
Aside from contribution limits, HSAs have some contribution rules to follow.
- Anyone can contribute to your HSA if they chose to, most commonly, the owner of the HSA and the owner’s employer.
- There is no contribution minimum, and the owner of an HSA does not need to make contributions. With most HSAs, you can only pay medical bills with money you’ve contributed and saved. With Lane Health’s Advance line of credit, you can pay bills with pre-tax dollars, with 12 months to repay your Advances from the time they are incurred.
- You may contribute to your HSA via check. However, while you can still receive an income tax deduction when you file your taxes, you will not receive any reduction in payroll taxes. Thus, we recommend that you contribute to your HSA through deductions from your payroll. You can change the amount at any time.
1. Advances are issued by WebBank, Member FDIC