What Is An HSA And How Does It Work? | Money Unscripted

What Is An HSA And How Does It Work? | Money Unscripted | Fidelity Investments

Рет қаралды 2,864

Күн бұрын

You’ve heard of health savings accounts or HSAs. But who’s eligible? What expenses do they cover? What are their contribution limits? How are they different from FSAs? How can money in the account be invested, and what are the potential tax advantages? On this episode of Money Unscripted from Fidelity Investments, join host Ally Donnelly and Fidelity pro Amy Richardson as they explore ways an HSA could help you now and in retirement.
00:00 Welcome to Money Unscripted
00:58 What is an HSA?
01:23 What is a triple tax advantage?
01:53 How is an HSA different from an FSA?
02:46 How do I know if I’m eligible for an HSA?04:22 Is the money in my HSA automatically invested?
05:53 Can I only get an HSA through my employer?
07:40 How much can I contribute to my HSA?
09:27 How much should I save for medical expenses in retirement?
11:48 What can I use an HSA for?
13:33 What happens to my HSA after I pass away?
14:26 How much of my HSA should I spend?
15:36 Do I need an advisor to set up an HSA?
16:14 How do I open an HSA?
16:56 HSAs: A recap
Questions? Drop them below 👇 and we’ll reply right in the comments.
Join us at www.fidelity.com/MoneyUnscripted.
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Email us at moneyunscripted@fidelity.com.
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The information provided herein is general in nature. It is not intended, nor should it be construed, as legal or tax advice. Because the administration of an HSA is a taxpayer responsibility, you are strongly encouraged to consult your tax advisor before opening an HSA. You are also encouraged to review information available from the Internal Revenue Service (IRS) for taxpayers, which can be found on the IRS website at www.irs.gov. You can find IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, and IRS Publication 502, Medical and Dental Expenses, online, or you can call the IRS to request a copy of each at 800-829-3676. wwwxq1.fidelity.com/learning-....
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.
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Пікірлер: 16

@umeshpaudyal1472 15 күн бұрын

Thank you guys appreciate it . Great information, keep on Spreading this beautiful knowledge ❤

@Fidelity 15 күн бұрын

Thanks for commenting, Umesh! We're glad you're enjoying our content here on KZfaq. If you have any questions, please don't hesitate to ask. Have a great day!

@MrsPamB 15 күн бұрын

Thanks so much for this video, I wasn’t aware that you should leave some of your HSA in cash! I have all it invested except for my most recent contribution. That would have been embarrassing at my doctors appointment next week when I tried to copay with my debit card 😮

@Retiredmco 15 күн бұрын

Great advice!! I have my HSA with Fidelity in the semi conductor fund and S &P 500. I'm just plowing the max in every year. Won't start using funds from it for at least 15 years.

@ladycoder2095 13 күн бұрын

Will fidelity HSA accept electronic receipts when filing for reimbursement many years later? In case we don't have a hard copy of the original receipt? Thanks.

@Fidelity 13 күн бұрын

Thanks for reaching out! We're happy to clarify. Fidelity does not monitor the reason for any given Health Savings Account (HSA) distribution (and distributions are not coded "qualified" or "non-qualified"); rather, you are responsible for tracking contributions and distributions whether for Qualified Medical Expenses (QMEs) or otherwise. For any QME distributions, it will be important for you to retain medical receipts and track the expenses you pay. You can read more on our HSA spending page, linked below: Spending with your HSA: www.fidelity.com/go/hsa/how-to-spend Please let us know if you have any additional questions!

@larryjphotosjanssen8532 14 күн бұрын

Contributing to an HSA affects your SS benefits later since you do not pay SS tax on it and your employer also doesn't match your contributions. Correct? Curious how much it changes your benefit?

@ladycoder2095 15 күн бұрын

Can a self employed person put money in HSA?

@Fidelity 15 күн бұрын

Hey there! To contribute to an HSA, you must be enrolled in an HSA-eligible health plan. Those eligible for an HSA must also be aware of the contribution limits. For 2024, those are $4,150 for self-only coverage and $8,300 for family coverage. Anyone 55 and older can contribute an additional $1,000 as a catch-up contribution for both 2023 and 2024. While you can only contribute a certain amount to your HSA each year, all contributions roll over from year to year for you to use. You can learn more about HSA contribution limits and eligibility requirements in the article linked below. You can learn more about HSA contribution limits and eligibility requirements in the article linked below. HSA contribution limits and eligibility rules: www.fidelity.com/learning-center/smart-money/hsa-contribution-limits That said, we strongly encourage you to consult with a qualified tax professional regarding your specific situation if you have questions about the eligibility of your plan, or related to tax filing or reporting. Please don't hesitate to let us know if there's anything else we can help with.

@ladycoder2095 15 күн бұрын

@@Fidelity , thanks for the info. Can you also please talk about parking the funds in the default Money Market account FDRXX that Fidelity offers in the next podcast?

@Fidelity 15 күн бұрын

Thanks for the suggestion! We'll make sure to pass it along to the appropriate teams.

@MrsPamB 15 күн бұрын

@1614josue 11 күн бұрын

Can I have both an FSA and an HSA?

@Fidelity 11 күн бұрын

Hi there, Bebo! Thanks for reaching out. You can typically only contribute to one type of plan in a year at a time unless your employer offers a limited-purpose flexible spending account (LPFSA). An LPFSA is an employer-sponsored pre-tax account that can used to pay for qualified dental and vision expenses for employees enrolled in a Health Savings Account (HSA) -eligible health plan. To further expand, HSAs can be opened by individuals with eligible high-deductible health plans while, in contrast, FSAs are exclusively available as an employer benefit. Accordingly, you are not able to open an FSA on Fidelity.com. We have a handy article on our website here that explains in more detail here: www.fidelity.com/learning-center/smart-money/hsa-vs-fsa Thanks for reaching out; we hope you have a great day!

@1614josue 11 күн бұрын

@@Fidelity this is great information. Thank you for reaching back to me. 😁

@Fidelity 11 күн бұрын

We're glad to hear this, Bebo! If you have any future questions, please don't hesitate to ask. As always, don't forget to like and subscribe to stay updated on our new videos. Have a great day!