Health Savings Accounts (HSAs) provide a convenient, tax-advantaged way to save for and pay medical expenses. Easy payroll deductions set aside pretax dollars that you can use to pay for medical expenses now or in the future.
Overview
When you enroll in a Key Medical Plan option – Key Medical 1, Key Medical 2 or Key Medical 3 – you may be able to open a Health Savings Account (HSA). An HSA is a bank account that allows you to deposit funds via pretax payroll deductions. You can make tax-free withdrawals from your HSA to pay for qualified medical expenses, such as your deductible and coinsurance costs, as well as prescription drug, dental and vision expenses. You will need to open a KeyBank HSA in order to begin your pretax payroll contributions and to receive any Wellness Incentive once you meet eligibility requirements.
You do not have to use the funds in the year in which they are deposited; you can save them for future medical expenses – or even use them after you leave Key or retire.
Taking advantage of an HSA offers triple tax savings:1
- The money you put in is tax advantaged, up to the annual 2024 IRS limit ($4,150 single, $8,300 family)
- You may have investment selection options after your account balance reaches $3,500, and any interest earned on HSA accounts will be tax-free
- You won’t pay taxes on the money you use for eligible healthcare expenses2
Employees have the option to change HSA contributions throughout the year.
What is a Health Savings Account or HSA?
It's like a savings account for your healthcare expenses.
The advantages are that:
1. you decide when and how to use the funds in your account, and the balance carries over from year to year;
2. you can use the money to pay for medical expenses for yourself, your spouse, or any dependent;
3. in addition to paying for prescriptions, medical bills and doctor visits, your HSA can pay for X-rays, braces, fillings, eyeglasses, hearing aids, and more;
4. the money you contribute to your KeyBank HSA account through payroll deductions is pre-tax, it grows tax-free and it can be withdrawn tax-free to pay for qualifying medical expenses, even after you retire.
To be eligible for an HSA, you must covered only by a high-deductible health plan, you cannot be enrolled in Medicare, and you cannot be claimed as a dependent on someone else's tax return.
And paying with your HSA is easy. You can use your HSA debit card at the pharmacy or doctor's office. Pay medical expenses through your bank's online bill pay, and reimburse yourself for out-of-pocket expenses online or by withdrawing money with your debit card.
Your HSA can help you mange your medical expenses now or in the future.
Features
- Easily manage your healthcare spending with a special HSA debit card
- Manage and track expenses with online Bill Pay and monitor your account activity through online and mobile banking3, 4
- You and/or Key (as your employer) can make contributions to your KeyBank Health Savings Account (HSA)
More Information
- View How the Plan Works
- Review the complete list of HSA rules, limitations and qualified expenses; see IRS publications 969 and 502, available at irs.gov; or call the IRS Helpline at 1-800-829-1040