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Save It, Don’t Spend It!

January 12, 2017

By Benefits Team

It comes as no surprise that the cost of health care continues to steadily grow each year.  From 2015 to 2016, the estimated retiree health care costs reflected a 6% increase.  With the consistent rise in healthcare costs and the overall cost of living, it is crucial to create a holistic retirement-savings strategy. You already contribute to a retirement plan.  What more can you do?

Most of us are familiar with the pre-tax benefit of enrolling in a health savings account (HSA).  Did you know that a HSA actually has a triple tax advantage?  The contributions are tax-free, your earnings on investments grow tax-free and distributions to pay for medical expenses are tax-free.  Your HSA can easily become another long-term investment for your retirement, while reducing your current taxable income. Guard yourself against the rising cost of healthcare by maximizing your HSA contributions each year.

2017 Limits

  • $3,400 individual coverage

  • $6,750 family coverage

  • Add $1,000 to these limits if you will be age 55+ by 12/31/17

Eligibility

  • Must be enrolled in the US Health Plan

  • Not enrolled in another health plan (for example, your spouse’s employer’s plan)

  • Not enrolled in Medicare

  • Not claimed as dependent on someone else’s tax return

Keep your receipts if you are using the HSA debit card or requesting reimbursement electronically in case you are audited by the IRS.  You will need to provide proof that your claims were eligible expenses.

For further information regarding the HSA account, please see below:

  • Eligible HSA expenses click

To enroll log in to your WageWorks online account, or if you have not registered in WageWorks yet, go to

> Log In /Register > Employee registration.