HSA Benefits

• Your contributions to your HSA are deductible for income tax purposes.

• Employer contributions to your HSA are deductible by the employer.

• Earnings are tax deferred.

• Distributions are never taxed if used for qualified medical expenses.

• Withdrawals for non-medical expenses are subject to ordinary income tax. Prior to age 65, they are also subject to a 10% IRS penalty.

• Balances may accumulate and roll over from year to year.

• Upon death, HSA assets become property of the named death beneficiary(ies). A spouse beneficiary may treat the assets as his or her own HSA, while a non-spouse beneficiary must treat the assets as ordinary, taxable income.