Save Money on Medical Expenses While Earning Interest on Pretax Income with a WageWorks HSA

The WageWorks Health Savings Account (HSA) is like a 401(k) for medical expenses. It enables you to set aside money from your paycheck pretax into a savings account used for eligible expenses and have the interest grow tax-free. You can also invest a portion of your HSA savings in a variety of investment options. Like FSAs, participants use pretax funds deposited into an account to pay for out-of-pocket, eligible health care expenses.  But unlike FSAs, unspent money is portable and rolls over into the next year to cover expenses or to continue earning interest tax free. HSAs also differ in that you can take your money with you if you switch employers, or even if you change health insurers.

HSAs are available to any individual covered by a qualified high deductible health plan, a type of health insurance plan specified by Congress with generally lower premiums and higher deductibles than a traditional health plan. Ask your employer for details and enrollment information if a high deductible health plan option is offered. Click here to find out if you qualify for an HSA.

Example HSA Savings

Calculate your HSA savings here.

How Does It Work?
HSA contributions are deposited in an FDIC-insured special interest-earning account, which you can draw from at any time. HSA funds can be used for eligible expenses until the deductible has been met. Then the individual's insurance will begin coverage. Unused money can stay in the account or be placed in an investment account that offers competitive interest rates, low fees and a variety of options.

An HSA can help you save in three ways. First, as you add funds into your account, your contributions reduce your annual taxable income. Second, the funds you withdraw to pay for qualified medical expenses remain untaxed. Third, you save again when funds in your HSA accounts earn interest tax free.

Determine how much you can contribute to your HSA here.

Helping You Make the Most of Your HSA
WageWorks offers an online Learning Center that answers your frequently asked questions about our programs and webinars to help you make the best program choices. We also provide customer service via email and toll-free numbers available from 8 a.m. – 8 p.m. ET, Monday through Friday. In addition, we offer real-time account information online and via an interactive telephone system, so you can track account activity anywhere, anytime.

Please note: Services available through WageWorks website site by clicking here or consult your Human Resources department for your specific program details.