Health Savings Account
GET STARTED: Learn all of what an HSA has to offer
GREAT BENEFITS FOR YOU
Convenience
Paying for expenses from your HSA is as easy as using a debit card.
Choice
Pay for qualified expenses from your HSA or save your HSA money and pay out-of-pocket.
Control
You decide how the money is spent and you have the freedom to keep it if you change jobs or retire. The best thing is – your balance rolls over from year-to-year, so you can build up savings for the future!
Rocket Mortgage Fieldhouse will contribute to your HSA to help you pay your Deductible, if it happens!
In 2024, eligible employees will receive:
$850 for Single coverage
$1,700 for Families
What is an HSA?
A Health Savings Account, also known as an HSA, is a savings account for health care costs which you don’t pay any federal income tax on the money you deposit. Once you enroll in the HSA-qualified CDHP, you deposit money into your HSA so it’s there to pay qualified medical expenses. When you use your HSA funds to pay for qualified medical expenses, you don’t pay income tax on the money you withdraw.
Why have an HSA?
Save on premium by enrolling in the HSA-qualified CDHP & instead choose to save your money in the tax-advantaged HSA.
It’s easy to use your debit card to pay your qualified expenses. It’s not just for doctor visits, use your HSA to pay for: Eyeglasses, Prescriptions, Braces – and more!
It’s triple tax-free.
Tax-Free Deposits
Even if you don’t itemize deductions you don’t pay federal income tax on your contributions.
Tax-Free Savings
You keep any money you don’t spend and it grows tax-free.
No use-it-or-lose-it.
Tax-Free Withdrawals
There’s never tax on withdraws to pay for qualified expenses.
It’s better than an FSA.
Unlike an FSA, your savings grow from year-to-year. There’s no “use it or lose it rule”; the money is yours to keep until you need to use it. Use the account as a savings vehicle for the future, growing a balance to use for future medical expenses into retirement.
You can also invest it.
Once your balance reaches the required minimum, you can begin investing in mutual funds. If you earn money on your investments, you don’t pay income tax on that money, either.
You can build a nest egg for retirement: After age 65, you may use your HSA savings to pay any expense and only pay regular income tax on your withdrawal.
MANANGING YOUR HSA
ABOUT YOUR HSA
Eligibility
Rocket Mortgage Fieldhouse is pleased to offer the HSA as a savings option when you elect the HSA-qualified CDHP Plan. Because of the rich tax advantages of this type of account, the IRS regulates who is eligible to receive those tax advantages of the HSA.
Please review these rules carefully.
- You must elect the HSA-qualified CDHP plan to qualify to open an HSA.
- You cannot be enrolled in Medicare (any part). If you are enrolled in Medicare, then you are not eligible to open an HSA. However, if you have already opened an HSA before you enrolled in Medicare, you can continue to use the money in your HSA to pay for eligible expenses, you just cannot continue to make pre-tax contributions to your HSA.
- You cannot be covered under Tricare, and cannot have received any health benefits from the Veterans Administration or one of their facilities, including prescription drugs, in the three months prior to opening your HSA.
- You must not have an FSA or be covered under any other medical insurance, such as a spouse’s plan, unless the other coverage is also a special HSA-qualified medical insurance plan.
- You must not be claimed as a dependent on another person’s tax return.
Opening your HSA.
Medical Mutual, your insurance provider, has partnered with Wealth Care Saver to offer the Medical Mutual HSA. To open your HSA, log into your Medical Mutual My Health Plan account (or register for an account) at MedMutual.com/member. Select the Claims & Balances tab and select My Spending Accounts. Just follow the instructions from there!
Once you have completed the process, you will receive a welcome letter by mail or email from Wealth Care Saver with your account number. Within 10 business days, you’ll receive your Medical Mutual Debit Card. If you have any questions about your HSA, please call Medical Mutual at 1-800-522-2037.
Use your HSA wisely.
The money saved in your HSA is intended to be used for qualified medical expenses (as defined by the IRS) or saved for future qualified medical expenses. In order to avoid extra taxes and tax penalties, you should only use the money to pay for qualified medical expenses, unless you are over age 65.
The list of qualified medical expenses is extensive and includes vision and dental services. You can find a complete list in IRS Publication 502 available on the IRS website, www.IRS.gov.
After age 65, it’s a retirement account – only better!
After age 65 you can withdraw money from your HSA even for non-qualified expenses and the money spent is taxed as normal income with no penalty, similar to other tax-advantaged retirement plans. Even better: Withdrawals for qualified medical expenses, including Medicare premiums, can be made without paying any federal income tax.
Qualified Medical Expenses.
For you & your tax-eligible dependents.
- Acupuncture
- Alcoholism treatment
- Ambulance
- Artificial limbs
- Braces
- Childbirth preparation classes (mother)
- Chiropractors
- Contact lenses
- Crutches
- Dental fees
- Dentures
- Diagnostic fees
- Doctor’s fees
- Drug addiction recovery
- Dyslexia language training
- Eyeglasses and examination fees
- Hearing aid and batteries
- Home modifications for handicapped
- Insulin
- Laboratory fees
- Maternity expenses
- Medicare Premiums
- Nursing homes
- Optometrists
- Orthodontia
- Orthopedic shoes
- Oxygen/oxygen equipment
- Prescription Drugs
- Psychiatric care
- Therapy treatments (prescribed)
- Transportation (for medical care)
- Vision correction surgery (e.g., LASIK)
- Vitamins (if prescribed)
- Wheelchairs
- X rays
Non Qualified Medical Expenses.
- Babysitting (for healthy children)
- Controlled Substances
- Cosmetic Surgery
- Dancing Lessons
- Diaper Service
- Electrolysis or Hair Removal
- Funeral Expenses
- Hair Transplants
- Health Clubs & Gyms for General Health
- Household Help
- Maternity Clothes
- Medigap (Medicare Supplement)
- Premiums
- Nutritional Supplements
- Swimming Lessons
- Teeth Whitening
- Treatments not FDA approved
- Weight-Loss Program (Unless for a specific disease diagnosed by a physician)
Is an HSA the right fit for you?
View sample scenarios below.
Age 42, Family Coverage – Bob
With the money that my employer puts into the HSA, it was the right choice to select the HSA-qualified CDHP plan. We have two very active, accident/sickness-prone children & we felt like the CDHP plan limited our exposure, while allowing us to pay for our medical expenses pre-tax. We take the savings on the insurance premiums & put that into our HSA – that paired with the contribution we receive from our employer more than covers our deductible for the year, if it happens!
Age 26, Single Coverage – Cindy
I’m just starting out & I don’t have a lot of extra money to spend, so I picked up the HSA-qualified CDHP plan since it was the cheaper option. I didn’t even realize that my employer contributes to my Health Savings Account! I’m healthy & haven’t needed to use my insurance aside from my regular check-ups, so I was able to roll my balance over into the following year & now I have a jumpstart on savings for the future!
Age 56, Family Coverage – Annette
My husband & I are in our fifties & see retirement on the horizon. We’re both blessed with good health, so we don’t feel like we needed to pay for a lot of insurance we wouldn’t use. We plan to put as much as we can into our HSA, so that we have it in retirement – we know we’ll need this in the future to pay for healthcare costs & like that we also have the option to use it to pay for our Medicare premiums. We love watching our balance grow & knowing it will be there for us when we need it!
