Frequently Asked Questions
Account Options & Details
What Does My HSA Include?
As part of your Health Savings HSA, you have access to both an investment account and a cash account.
Your investment account offers first dollar investment options in your choice of low cost, high quality mutual funds. That means that there’s no minimum balance required to invest. Remember that investment products are not insured by FDIC or any federal government agency. Investments may lose value, and they are not guaranteed by the bank or any bank affiliate.
Your cash account is an FDIC-insured savings account with an optional debit card. The interest you earn in the cash account increases as your account balance increases and there are no monthly low balance fees. Please note that the debit card cannot access the investment account; however, you can easily move funds between the investment account and cash account online at any time and at no cost.
What Resources Are Available?
What Interest Do I Earn On My Cash Account?
Interest is credited monthly based on the balance in your cash account. Interest rate is subject to change at the discretion of Health Savings at any time.
$25,000 or more....0.25%
$15,000 – $24,999.99....0.20%
$10,000 – $14,999.99.....0.15%
$5,000 – $9,999.99.....0.10%
$0 – $4,999.99....0.0%
Can I Access My Account Online?
Yes, click on LOGIN in the top right corner of this website, then enter your username and password. Remember, your username, password and answers to secret questions are case sensitive. Your username can be up to 18 characters. Your password must be at least 8, but no more than 16 characters. For increased security, you MUST use letters, numbers and one of the following special characters in your password: ! # $ % & ? @
How Do I Contribute?
You may contribute online or via pre-tax payroll deduction.
To contribute online, log into your account, then click the “Schedule Contribution” icon. Next, fill in your contribution details and banking information, then click “Submit.” To save your banking information for next time, go to “My Profile” and click “Bank Information.” Then, click “Add a bank account,” enter your information, then click “Save.”
To contribute via pre-tax payroll deduction, contact your employer. If your employer has a Section 125 Cafeteria Plan, they should be able to deduct your contributions from your paycheck on a pre-tax basis, which decreases your taxable income.
When Can I Access My First Contribution?
Your first contribution is subject to a 5-7 business day hold and may not be available for immediate withdrawal.
How Do I Transfer/Roll Over Funds From Another HSA?
To transfer funds from another HSA to your Health Savings HSA:
Complete our Transfer Request F : After completing and returning the form, please allow 4–6 weeks for your transfer request to be completed.
When we receive your transferred funds, the money will be allocated according to your investment elections. If you have not set up your elections, the money will remain in your cash account until you decide to transfer funds to your investments. To set up or change your investment elections, see “How Do I Make Investment Changes?“
How Do I Withdraw Funds?
You may withdraw funds online or via your debit card.
To withdraw funds online, log into your account and click “Withdrawal” on the top navigation (or click the “Withdraw Funds” icon). Enter the amount to withdraw and how you would like to receive the funds, then check “I agree to the terms and conditions” and click “Submit.”
To withdraw funds via your debit card, simply visit any ATM. For your security, there’s a $500 daily limit on ATM withdrawals. Funds are deducted from your cash account. Please note that your debit card cannot access your investment account; however, you can move funds between your investment account and cash account online.
When Will I Receive Tax Forms?
Form 1099-SA is mailed at the end of January.
Form 5498-SA is mailed at the end of May/beginning of June.
How Do I Designate Or Change A Beneficiary?
You may designate or change a beneficiary online. Log into your account and click “My Profile,” then click “Beneficiaries” under “My Profile Settings.” From there, click “Add A Beneficiary,” enter your beneficiary’s information, and click “Save.”
If you live in a common law or in a community property or marital property state and wish to designate someone other than your spouse as your primary beneficiary, see “Am I required to list my spouse as the beneficiary if I am married?” for more information.
Do I Need To Make Primary And Contingent Beneficiary Designations?
We recommend naming both a primary and contingent beneficiary.
The primary beneficiary will receive 100% of your account balance upon your death.
The contingent beneficiary will receive the account balance if the primary beneficiary predeceases you.
You can name more than one person as your primary beneficiary and more than one person as your contingent beneficiary. If you name more than one person, indicate the specific whole-number percentage of your balance to be paid to each beneficiary.
How Often Should I Review My Beneficiary Designation?
You should review and update your beneficiary designations periodically, particularly when you experience a major life event, such as a birth, marriage, divorce or death in the family.
Am I Required To List My Spouse As The Beneficiary If I Am Married?
Am I Required To List My Spouse As The Beneficiary If I Am Married?
If you are married in a community property or marital property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), you must designate your spouse as your primary beneficiary. If you wish to designate someone other than your spouse, contact us at support@HealthSavings.com or OnlineMDlive@gmail.com
Otherwise, you may choose whomever you want to be the beneficiary of your HSA; however, only spousal beneficiaries are able to preserve the tax advantages upon a spouse’s death.
If designated as beneficiary of your HSA, your spouse will not be responsible for taxes on distributions for qualified medical expenses upon inheriting the account.
As beneficiary, your spouse becomes owner of your HSA, allowing him or her to:
Make tax-free distributions from the HSA for qualified medical expenses
Maintain tax-free growth of the funds in the account
Contribute to the account if he or she has an HSA-qualified consumer-driven health plan (CDHP)
If you fail to designate a beneficiary, or are married and name someone other than your spouse as beneficiary, the account ceases to be an HSA upon your death. As a result, the fair market value of the account becomes taxable in the year of your death for non-spousal beneficiaries.
Your spouse will not lose the ability to make tax-free withdrawals for qualified medical expenses if he or she does not qualify to contribute to the HSA.
Any qualified medical expenses you incur before your death may be reimbursed from the account before determining the fair market value of the account.
Please consult your tax advisor if you have questions about the potential tax consequences associated with your HSA beneficiary designation.
Debit Card Questions
When Will I Receive My Card?
If you chose to receive a debit card, your card will arrive in the mail within 5 to 7 business days of opening your account. For your security, the card will come in a nondescript envelope from Richmond, VA. Please watch your mail carefully.
How Do I Activate My Card?
Simply dial (855) 284-0673 from your home phone (must match the home phone number on file) and follow the prompts.
How Do I Change Or Select A New PIN?
You will select a personal identification number (PIN) during debit card activation. Primary account holders and their authorized signer(s) share the same PIN. You can change the PIN by contacting OnlineMDlive@gmail.com from your home phone.
How Do I Order Additional Cards?
To get a debit card for yourself, call us at (888) 354-0697 and we’ll get one out to you immediately. To get debit card(s) for your authorized signer(s), log in to your account, click on “My Profile,” then click “Authorized Signers” under “My Profile Settings.” Click “Edit” for the authorized signer you’d like to have a debit card, check “Yes, I would like a card for my authorized signer,” then click “Save.” Debit cards for the account holder and first authorized signer are free, but debit card(s) for additional authorized signer(s) are $6/each.
Where Is My Card Accepted?
Your debit card is accepted at ATMs and by medical providers who accept Visa (e.g., doctors’ offices, pharmacies, medical supply stores, etc.).
Why Doesn’t My Card Work At Certain Locations?
To safeguard against improper or accidental use, debit cards are restricted to merchants that provide medical products and services. If you need to make a purchase from a non-medical merchant for an eligible medical expense, you may purchase the product or service out-of-pocket and reimburse yourself later from your HSA.
How Can I Pay For Medical Expenses Without Being Charged A Transaction Fee?
After you receive a bill for a qualified medical expense, fill in your debit card number on the payment form and return your payment to the address noted on the bill.
Are There Limits On How Much I Can Spend On My Card?
Yes. For your security, there is a daily limit of $2,500 for point-of-sale purchases and $500 at ATMs. If you need to pay a larger medical expense, contact us to request a temporary limit increase.
Remember, funds are deducted from your cash account, so you must have sufficient funds in your cash account to cover the expense(s).
What If I Don’t Have Enough Funds In My HSA To Purchase What I Need?
You have options! You can pay part of the expense from your HSA and the remaining portion using another payment method. You can also pay the entire expense using another payment method and reimburse yourself later from your HSA. Or ask the medical provider to set up a payment plan.
Is It Possible To Overdraw My Account?
Yes, it’s possible to overdraw your cash/debit account and incur fees if your HSA does not have sufficient funds to cover the transaction when processed. To avoid fees, we strongly encourage you to monitor your account balance and debit card purchases.
What If I Use My Card For An Ineligible Expense?
If you use your debit card for a non-qualified medical expense, you must report the expense on your income taxes and are subject to income tax and a 20% penalty. To prevent this, contact us for a Distribution Reversal Form before filing your taxes on April 15.
Who Do I Notify If My Card Is Lost Or Stolen?
Contact us immediately at onlineMDlive@gmail.com
Why Should I Invest For The Future?
On average, Medicare covers about 59% of healthcare costs, leaving you to cover the remaining 41% from your retirement savings. Studies indicate that the average couple retiring at 65 years old today will need up to $404,000 to cover these expenses. So, you can see why it’s important now, more than ever, to efficiently save for these future expenses. Find out how an investment HSA can help.
Is There A Limit On The Number Of Funds In Which I Can Invest?
No. You can invest in as many funds as you would like.
How Do I Make Investment Changes?
You may make investment changes online.
If you’d like to change how your contributions are allocated (change your elections) online, log into your account and click “Investments” on the navigation bar, then click the “Change Elections” icon in the “Investment Actions” box. From there, click “Add Elections” and add your desired funds, then enter what percent of future contributions should be allocated to each fund (the total contribution percentage must be 100%). Requests received before 2:00 p.m. ET will be processed the same business day. If a request is submitted on a non-business day, it will be processed the following business day. Please note that moving funds from cash to investments is a multiple day process and will not be processed with pricing from the day the request was submitted. All forms are processed in the order in which they are received.
If you’d like to transfer existing money from one mutual fund to other fund(s), log into your account and click the “Manage Investments” icon. Next, choose whether you’d like to transfer funds by percent, dollar, or shares. Finally, enter the amount of money you’d like to transfer out of a particular fund(s) in the “Transfer Out” box beside that fund(s) and enter the amount of money you want to transfer to a particular fund(s) in the “Transfer To” box beside that fund(s).
What Is An HSA?
Simply put, a health savings account (HSA) is a tax-exempt account established for the purpose of paying or reimbursing qualified medical expenses for an individual, spouse or family. To be eligible to open an HSA, you must first choose a HSA-qualified consumer-driven health plan (CDHP).
An HSA provides triple tax savings. Funds are deposited on a pre-tax or tax-deductible basis, earnings grow tax free and withdrawals for qualified medical expenses are tax free.
HSA funds roll over from year-to-year, and you may use or keep your funds depending on your financial needs.
In short, an HSA is like a 401(k) or IRA for your medical expenses, only better because withdrawals for qualified expenses are tax free.
What Is A CDHP?
A consumer-driven health plan (CDHP) is a health plan that typically has a higher deductible than other health plans, and the individual is responsible for paying medical expenses until their deductible is met. Yearly exams and preventative care are covered 100% through a CDHP, so the individual generally pays for treatment, prescriptions, etc. outside of annual prevention. To determine if you have an HSA-qualified CDHP, contact your health insurance provider.
What Are The Tax Benefits?
Contributions can be made through pre-tax payroll withholding, or they can be made after-tax and deducted on your tax return, even if you don’t itemize
Account earnings grow tax free
Withdrawals for eligible medical expenses are tax free for you, your spouse or your tax dependents
Who Is Eligible For An HSA?
Federal regulations require you to meet these eligibility requirements in order to open and contribute to an HSA.
You must be:
Covered under a qualified consumer-driven health plan (CDHP) on the first day of the month
You must not be:
Covered by any other health plan, including your spouse’s health insurance
Covered by your own or spouse’s medical flexible spending account (FSA)
Enrolled in any part of Medicare or Tricare
Receiving Veteran’s health benefits now or in the past 90 days for a non-service connected disability
Claimed as a dependent on another person’s tax return
Can I Use My HSA To Pay My Spouse’s And/Or Children’s Qualified Expenses?
Yes. In additional to paying your own expenses, you may use your HSA to pay your spouse’s and/or child(ren)’s qualified expenses, regardless of their insurance coverage. For additional information regarding domestic partnerships, divorce, etc., see IRS publicat
What Are My Responsibilities As An HSA Owner?
You are responsible for determining whether you are eligible for an HSA, whether your contributions/withdrawals are qualified and for seeking tax, legal and/or investment advice as needed.
What Is Covered By An HSA?
Who Can Contribute To My HSA?
Your family members
Any other person including a “non-individual”
Can I Contribute Outside Of Payroll Deductions?
Yes. You may contribute to your HSA outside of payroll deductions by contributing online. Be sure to monitor your contributions to ensure that you do not exceed IRS annual contribution limits.
When Is The Deadline For Contributions?
The deadline for contributions is the federal income tax deadline, generally on April 15 each year.
Can I Use My HSA For Non-Qualified Medical Expenses?
Yes, but funds used for non-qualified medical expenses must be reported on your annual income taxes and are subject to income tax and a 20% penalty. The 20% penalty doesn’t apply to withdrawals made after you’ve reached age 65 or after your disability or death.
What Is The Deadline For Submitting Claims For Reimbursement?
There is no deadline for submitting claims for reimbursement from an HSA. In the event of an IRS audit, you will be required to produce receipts for any medical expenses for the amounts that have been reimbursed from your HSA.
How Is Activity Reported?
Our custodial bank reports withdrawals on Form 1099-SA and contributions on Form 5498-SA. These forms are mailed to the account holder and the IRS. As the account holder, you are responsible for reporting contributions and withdrawals on Form 8889 when you file your annual income taxes. HealthSavings is not responsible for monitoring your contribution limits or withdrawals.
What Happens When I Enroll In Medicare?
Once you’ve enrolled in Medicare, you are no longer eligible to make contributions to your HSA. You will need to adjust your annual HSA contribution limit (and catch-up amount) based on the number of months you were eligible to contribute that year. For example, if you enroll in Medicare as of July 1, your annual contribution limit will be reduced by half, because you were only eligible to make HSA contributions for six months (January 1 – June 30).
After Medicare enrollment, in addition to the normal medical expenses, you can also use your HSA funds to pay for Medicare and IRS approved health insurance premiums. Premiums for Medicare Parts A, B and D, Medicare HMO and any employer-sponsored health insurance are considered eligible medical expenses that can be paid with your existing HSA funds.
If I’m Eligible For Medicare But DO NOT Enroll In Medicare Part A, B Or D, Can I Still Contribute?
Medicare enrollment is what disqualifies you from being eligible to contribute to your HSA. Eligibility alone doesn’t impact you being able to contribute to your HSA. *Please note that you cannot opt out of Medicare Part A without opting out of all Social Security benefits.
What Happens When I Pass Away?
If your spouse is your beneficiary, the HSA becomes his/hers and can still be used tax free for eligible medical expenses.
If your spouse is not your beneficiary, the HSA becomes part of your estate, and fair market value is calculated on your date of death.
How Often Will I Receive Statements?
If you have a debit card, you will receive monthly statements. If you only have investments in your account, you will receive quarterly statements.
Will My Statements Be Paper Or Electronic?
All monthly statements are issued electronically; quarterly statements can either be issued on paper or electronically. If you are a debit card holder, your quarterly statements will be issued either on paper or electronically, but your monthly statements will only be issued electronically.
To change how your quarterly statements are issued, log in to your account and click “My Profile,” then scroll to “Contact Information” and click “Edit.” At the bottom of that section, you can check a checkbox to receive your statements electronically or leave it unchecked to receive paper statements.
If I Am Self-Employed Or Not Making Contributions Through My Employer, Where Are My Contributions Reported?
Even if you are self-employed or not contributing through your employer, your contributions are still shown in the “Employee” line item on page 1 of your statement.
Where Are Transfers And Rollovers Shown On My Statement?
Transfers and rollovers are shown in the “Roll/Exch/Xfer” line item on page 1 of your statement.
What Does The ‘Earnings’ Line Item On My Statement Consist Of?
The “Earnings” line item on page 1 of your statement shows any dividends gained from your investments, as well as any interest gained from your cash/debit card account.
What Does The ‘Investment Results’ Line Item On My Statement Consist Of?
The “Investment Results” line item on page 1 of your statement shows any capital gains or losses from your investments for that time period.
How Can I See What Fees Were Charged To My Account?
The “Fees” line item on page 1 of your statement refers to all fees charged to your account for that time period.
Your fees are also broken out in your Form 5498-SA. To view or download this form, log in to your account and click “Statements & Documents” on the top navigation. Then, click “Private” under “Document Type” to see your Form 5498-SA. Form 5498-SA lists the contributions to your HSA in the previous tax year, so if you didn’t make any contributions in the past year, you won’t see a form.
Why Don’t My Current Investment Elections And Current Savings Allocations Match?
On page 2 of your statement, the “Your Portfolio Allocation” section displays your current investment elections and savings allocations. Your current savings allocations shown how you have allocated your funds until now, while your current investment elections show how you are allocating your funds moving forward.
Here’s an example of why your investment elections and savings allocations might be different: When you opened your HSA, you could have put all of your money into your cash account to pay for current medical expenses. However, a week ago you realized the importance of investing your funds and changed your elections to 75% investments and only 25% cash.
When you get your statement, your current investment elections will be 75% investment and 25% cash. However, your current savings allocations will be heavily weighted towards your cash account, since that’s where all your funds had been going until a week ago.
Why Are My Investment Activities Listed As Pre-Tax Or After-Tax Incorrectly?
On page 3 of your statement, there’s a section called “Your Activity” that shows contributions to your investment funds. Your contributions will be listed as “pre-tax” or “after-tax.”
The “employee pre-tax” and “account holder after tax” appears because we are currently sharing this platform with Employers and other retirement entities. For HSA account holders, the wording is purely cosmetic; it has no relevance to contributions, distributions or any activity on the HSA and tax forms are not affected. Basically, you shouldn’t pay any attention to seeing “pre-tax” or “after-tax” here.
Where Can I See My Debit Cards Transactions On My Statement?
Debit card transactions are listed in the “Debit Activity” section of your statement, which is either on page 3 or 4 of your statement (depending on how much investment activity you have