HSA 4 Things To Know Flyer

Four Things to Know about a Health Savings Account (HSA) Have you been hearing the buzz, but you’re still not sure what an HSA is or how it works? 1 to create a unique approach to health An HSA pairs with an HSA-eligible health plan care—one that can play a valuable role in your overall health and 昀椀nancial wellness. Here are four key things to know about an HSA. 1 It’s YOURS 3 It’s FLEXIBLE An HSA is an individual account you own that can Spend your HSA today or save it for tomorrow—it’s be used to pay for out-of-pocket quali昀椀ed medical up to you. Because your balance automatically carries expenses that your health plan doesn’t cover. over from year to year, you don’t have to worry about You decide how much to contribute,2 losing money that you haven’t spent. If you’re paying when to tap into your HSA, and how to invest your savings. You can for current quali昀椀ed medical expenses, you can save use your HSA to pay for quali昀椀ed medical expenses money in your HSA in cash for easy access. Any savings incurred by you, your spouse, and your dependents— not needed for current quali昀椀ed medical expenses can including health plan deductibles and coinsurance, be invested in a wide variety of investment options— most medical care and your services, dental and including mutual funds, stocks, bonds, and CDs—to vision care, and even over-the-counter medications. potentially grow your balance for future quali昀椀ed The entire balance is yours to keep—even if you medical expenses, such as those in retirement. change jobs, change medical coverage, or retire. Once you reach age 65, you can use your HSA for any reason—just pay normal income taxes on any money used for a nonquali昀椀ed medical expense.3 2 It’s EASY TO USE You can save money in your HSA on a pretax basis 4 It’s A SMART WAY through payroll deductions or by making after-tax contributions by transferring money online from TO SAVE MONEY an outside bank account. When you decide to use Because an HSA works together with an HSA-eligible your HSA to pay for a quali昀椀ed medical expense, health plan, you can potentially save money on health you have a variety of options to access your funds, insurance premiums and reduce your taxable income including using an HSA checkbook, an online bill at the same time. First, an HSA-eligible health plan paying service, or the direct debit capability, to generally has a much lower monthly premium than name a few. You can also access an online portal, a traditional health care plan. Second, an HSA o昀昀ers which provides an easy way to track, pay, and three-way tax savings you can’t 昀椀nd elsewhere, which manage claims. HSAs have a convenient can help you save money. Pretax contributions made reimbursement feature, too. If you decide to pay through payroll deduction lower your taxable income, out of pocket for a quali昀椀ed medical expense, you and after-tax contributions are tax deductible. Also, you can later reimburse yourself from your HSA at any don’t pay federal taxes4 time without penalty—weeks or even years in the on any investment earnings future—provided you have receipts that total the or on the money you use to pay for quali昀椀ed medical appropriate amount. expenses. Over time, those tax savings could add up. ® Want to know more about the Fidelity HSA ? Visit Fidelity.com/healthsavingsaccount or call 800-544-3716 or your plan’s toll-free number.

Keep in mind that investing involves risk. The value of your investment will 昀氀uctuate over time, and you may gain or lose money. 1 An HSA-eligible health plan is a high-deductible health plan that meets certain IRS requirements with respect to deductibles and out-of- pocket expenses. 2 Within contribution limits. The IRS contribution limits to an HSA for 2021 are $3,600 for individual coverage, and $7,200 for family coverage. In 2022, the contribution limits will be $3,650 and $7,300, respectively. If you are age 55 or older, you may be eligible to make a catch-up contribution up to an additional $1,000 each year. All contributions—whether from payroll, your employer or other third parties, personal check, bank transfer, or direct deposit—aggregate toward your maximum annual contribution limit. You are responsible for ensuring that all contributions in aggregate do not exceed your maximum annual contribution limit. 3 Under age 65, distributions used to pay for nonquali昀椀ed medical expenses are considered taxable income and are subject to a 20% penalty. 4 State tax may apply. See your tax advisor for more information on the state tax implications of HSAs. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 © 2021 FMR LLC. All rights reserved. 567483.15.0 01/41012 1.9888045.105