Health Savings Account FAQS
What is an eligible expense? Which is better for you – type of FSA is right for you? Are your dependents’ expenses covered? Find answers to all your questions about your WageWorks® Healthcare HSA.
Search HSA FAQs
There are two ways to make additional contributions to your WageWorks HSA.
You'd be surprised by how many different kinds of expenses are covered under an HSA. Check out this list of eligible expenses.
In general, you can use your HSA to pay for any qualified medical expense. Qualified medical expenses are defined by the IRS and include medical care, vision and dental care expenses, prescription drugs, and payments for long term care services and insurance.
An HSA may reimburse certain types of insurance premiums, such as COBRA continuation, or any health insurance plan maintained while receiving unemployment compensation under federal or state law for the HSA holder or for his/her spouse or dependents. If you have an HSA and are age 65 or older (whether or not you’re entitled to Medicare), you may use your HSA to pay for any deductible health insurance, such as retiree medical coverage other than a Medicare supplemental policy.
Generally, you cannot treat insurance premiums as qualified medical expenses unless the premiums are for:a. Long-term care insurance, subject to IRS mandated limits based on age and adjusted annually (see IRS Publication 502: Long-Term Care).
You may invest your HSA funds in bank accounts, money market accounts, mutual funds, and stocks. You may not invest in collectibles, art, automobiles or real estate. Log into your WageWorks account to see what kinds of investment options you have.
A best practice is to keep a small liquid balance in your HSA to use to pay for current eligible expenses.
Yes, the law allows a one-time transfer of IRA assets to fund an HSA.
The amount transferred may not exceed the amount of one year’s contribution and individuals must be otherwise eligible to open an HSA. Transfers are not taxable as IRA distributions. However, amounts transferred into an HSA from an IRA are not deductible. IRS Publication 969 provides more information.
Select your qualified high-deductable health plan and with it, your HSA, either for yourself (individual) or your family during Open Enrollment. Once the plan year starts, you can access your WageWorks HSA by logging into your WageWorks account. You may need to first register for your account.
Your pre-tax contributions via payroll deductions fund an HSA with BNY Mellon, but you can establish an HSA with a qualified HSA trustee or custodian of your choice. This is typically a bank or brokerage firm. Funds remain tax-free, assuming distributions are only taken for eligible healthcare expenses.
A qualified high-deductible health plan, or “HDHP,” is a type of health insurance plan. While an HDHP has a higher annual deductible than a traditional insurance plan, it also offers tremendous savings, including: