Health Savings Account (HSA) Support

Frequently Asked Questions

A HSA is an account that allows you to set aside money, tax-free, to pay for eligible medical expenses of an eligible individual, their spouse, and their tax dependents. You must be covered by a qualified High Deducible Health Plan (HDHP) to be eligible to make contributions to an HSA. 

Generally, to contribute to an HSA, you may only have health coverage under a qualified HDHP. A qualified HDHP usually has a higher annual deductible and lower premium than a PPO health insurance plan. Additionally, there are limits on the annual deductible and out-of-pocket maximum that you must pay for covered expenses.

Minimum deductible and maximum out-of-pocket levels required for a plan to be a qualified HDHP are determined by the Internal Revenue Service each year and are adjusted for inflation.

HSAs offer tax savings in three different ways providing you with more spendable income, regardless of your income level. Individuals may save money tax-free and build assets that they can use in their retirement years; and/or reduce their medical costs right now.

  1. HSAs afford you several tax advantages:
    • Tax-free contributions
    • Tax-free growth
    • Tax-free distributions for eligible medical expenses
  2. You “own” the account:
    • Balances roll over from year to year, there’s not a “use or lose” requirement
    • Even if you change jobs, change medical coverage, become unemployed, move to another state, or change your marital status, your HSA goes with you!
  3. Flexibility:
    • HSA dollars may pay for eligible medical expenses as defined by the Internal Revenue Code. Eligible medical expenses would include deductibles, co-payments, dental, vision expenses, or doctor appointments, as long as these expenses are not covered by other insurance.
  4. Retirement Savings:
    • Once you reach the age of 65, you can withdraw your HSA funds for non-medical purposes as needed in retirement - you will only need to pay income tax on the withdrawals.

You own your HSA, and you may take it with you wherever you work. If you participate in a qualified HDHP at your new employer, you may continue contributing to your HSA. If your employer has an HSA set up under a Section 125 Plan, you may continue to contribute on a pre-tax basis through payroll deduction.

If your employer does not offer a qualified HDHP, you may no longer contribute to your HSA. However, you may still use your remaining HSA funds to pay for eligible medical expenses.

If you are no longer covered under a qualified HDHP, you may no longer contribute to your HSA. However, you may still use your remaining HSA funds to pay for eligible medical expenses.

Generally, HSA funds may not be used to pay for health insurance premiums tax-free. However, there are exceptions for some premiums that are eligible medical expenses for an HSA. You may use your HSA funds to pay for health insurance premiums if you are collecting Federal or State unemployment benefits, have COBRA continuation coverage through a former employer, or have Medicare part A, B, C, or D (supplemental medical coverage premiums do not qualify).

Yes, unused funds roll over year to year, so you will not lose any money you don’t use.

Yes, you can have more than one HSA. You must be covered by a qualified HDHP to contribute to them, and your contributions combined must not exceed the annual maximum limit.

The funds you withdraw from your HSA are tax-free when used to pay for eligible medical expenses. Refer to the HSA Eligibility List for a comprehensive look at many of the items covered by an HSA.

Yes, in addition to covering the same items as an HCFSA, HSAs will also cover COBRA and some long-term care expenses.

Yes, an HSA offers significant tax advantages and provides opportunities to invest in mutual funds. If you’re looking for an additional way to plan for retirement, an HSA may provide you with another means to save for your retirement goals.

There is no time limit on when you can be reimbursed for eligible expenses, you can continue to invest your funds until you truly need them. For example, if you opened your HSA in January 2021 and had eligible medical expenses in June 2021 but decided to pay out-of-pocket, you can be reimbursed for those funds months or even years later. This is a great way to utilize your HSA as a savings tool for retirement. If you reach retirement age with years’ worth of eligible medical expenses, you can still receive reimbursement for these expenses free of taxes. The main thing to remember when applying this strategy, is to ensure you keep all your medical receipts and documentation in case of IRS audit.

Upon the death of an HSA account holder, any amounts remaining transfer to the designated beneficiary. If the beneficiary is the surviving spouse, then the spouse becomes the account holder of the HSA and the transfer is not taxable. Any withdrawals that are used for non-eligible medical expenses are subject to income tax. If the beneficiary is not the spouse, then the HSA ceases to be an HSA and is subject to income tax.

To update your HSA beneficiary, follow these steps:

  • Login to your online account.
  • Click Manage My Reimbursement Account.
  • Select your HSA under My Accounts.
  • Click View Beneficiaries and add your primary and contingent beneficiaries.

Note: When adding beneficiaries, you must allocate the percentage for each person and it must total 100%. Your beneficiary update will not be effective until you complete the allocation.

Account holders can choose to invest their funds in a variety of options. A minimum balance of $2,500 must be maintained in the HSA before investing.

You will not be charged fees to invest, however, fees associated with certain funds may be incurred. We recommend you review the fund’s prospectus for additional information when choosing the right investment option for you.

Benefits Debit Card

When you use your Benefits Debit Card to pay for eligible medical expenses, the amount is deducted straight from your account. 

Out-of-Pocket Reimbursement

With an HSA, funds are available in your account as contributions are made. If funds are not yet available at the time a payment is due, you may pay out of pocket and reimburse yourself when you have funds in your account with the following methods:

Online Bill Pay 

You can choose to reimburse yourself for any eligible medical expenses or pay your provider directly from your online account using our online bill pay option.

  • Online
  • AFmobile®
    • Log in to AFmobile to view your HSA balance from the home dashboard. 

If you already have an American Fidelity online account, simply log in to your account to view your HSA information.

If you have not created an account, click here to register now. Then, follow the prompts to complete the registration process. You will use this same registration information on the mobile app, AFmobile®.

There are no tax penalties to close your HSA. Keep in mind, if you withdraw the remainder of your account when you close your HSA and don't roll over to another HSA or use the dollars for eligible medical expenses, you must report the withdrawals as income on your income tax return and you will owe a 20% additional tax penalty before age 65.

Yes, there are specific forms you will receive to properly complete your income tax return if you have an HSA. Below are a few of the necessary forms you will need to help you file your tax return correctly with the Internal Revenue Service (IRS).

NOTE: American Fidelity Assurance Company does NOT provide tax advice. If you have questions regarding how to fill out IRS Form 8889, you will need to consult a tax professional.

IRS Form 1099-SA reflects all distributions from your HSA for the previous tax year. You will only receive this tax form if you’ve taken distributions for the specific tax year. Forms are mailed out and made available to you through your online account at the end of January.

IRS Form 5498-SA indicates your total contributions from the previous tax year. These contributions can be made up until the federal tax-filing deadline (usually April 15) of the new tax year. Forms are mailed out and made available to you through your online account at the end of May.

If you had contributions deducted from your paycheck, you can find this information already included in your Form W-2 in box 12. You will not have to wait until the end of May for your contribution information.

IRS Form W-2 shows total contributions made to your HSA through your employer (both your own pre-tax contributions and any your employer makes on your behalf) in Box 12W. This form is provided to you by your employer.

IRS Form 8889 is used to report contributions, distributions, and your tax deductions. You or your tax professional will complete this form using IRS Forms 1099-SA and 5498-SA provided by American Fidelity.

IRS Resources:

Internal Revenue Service (IRS) website

IRS Publication 502 – Eligible and ineligible medical expenses.*

IRS Publication 969 – Health Savings Accounts and other tax-favored health plans

IRS Forms 1099-SA and 5498-SA  Complete instructions for these forms

*While this is a guide, not all expenses in the publication are eligible expenses for reimbursement from the HSA. Please reference American Fidelity’s list of Health Savings Account (HSA) eligible expenses to ensure your expense is eligible under your employer’s plan. Other eligible expense lists may not be tailored to your employer’s plan.

Your annual tax forms will be mailed to the address on file by January 31st each year. If you prefer to have a digital copy, follow the instructions below to download your forms.

Download Instructions:

  1. Log in to your account and select Manage My Reimbursement Account.
  2. Click the red menu on the top left, click My Accounts, then select Benefit Account Summary.
  3. Select the Tax Forms link in the Account Resources section. This is located just above your account balance graph.
  4. You may be prompted to complete a PDF verification step. Follow the instructions provided.
  5. Select the form name to download. 

The fastest way to file a reimbursement claim is through your online account, or on our mobile app, AFmobile®.

  • Online
    • Log in to your online account.
    • Click on the File a Claim button.
    • Select Reimbursement Account(s).
    • Complete the claim form.
    • Click the Submit button.
  • AFmobile
    • Touch the Submit Reimbursement button on the AFmobile dashboard
    • Complete the Claim Form
    • Click the Submit button
  • Fax or Mail

Although documentation is not required to receive reimbursement for your HSA, it is important to keep all documentation to show proof of eligible expenses in case of an IRS audit.

No, there is no time limit to when you can reimburse yourself, as long as the eligible medical expenses were incurred after you opened your HSA.

For example, if you opened your HSA in January 2021 and had eligible medical expenses in June 2021 but decided to pay out-of-pocket, you can be reimbursed for those funds months or even years later. This is a great way to utilize your HSA as an emergency savings fund for larger expenses down the road. This also helps with saving for retirement. If you reach retirement age with years’ worth of eligible medical expenses, you can still receive reimbursement for these expenses free of taxes. The main thing to remember when applying this strategy is to ensure you keep all your medical receipts and documentation in case of IRS audit.

You are not required to submit documentation to withdraw funds from your HSA. However, we recommend keeping documentation for your records to prove funds were used for eligible medical expenses in case of an IRS audit.

You can open an HSA if you are:

  • Enrolled in a qualified HDHP
  • Not covered by any other type of health plan, including Medicare
  • Not claimed as a dependent on another person’s tax return (excluding spouse)

Yes, but there are a few important things to know.

As the HSA account holder, you are eligible to use your funds, without penalty, for eligible medical expenses of your spouse.

To use HSA funds for dependent expenses, the dependent must be claimed as a dependent on the HSA owner’s tax return. Because of this, a scenario could exist where an employee’s adult dependents are covered on the medical plan, but the employee’s HSA cannot be used to cover medical expenses for those dependents.

HSA Mistakes to Avoid: Spouse Rules

HSA Mistakes to Avoid: Dependent Rules

Refer to the HSA Eligibility List for a comprehensive look at many of the items covered by an HSA.

  • You have secondary coverage that is non-HSA compatible.
    • If you are covered by a qualified HDHP and also have secondary coverage through your spouse’s health plan that does not meet the minimum requirements for an HDHP, you would not be eligible to establish a new HSA or make contributions to a current HSA.
  • You are claimed as a dependent on another’s tax return.
    • If you are still being claimed on someone else’s tax return, you are not eligible to establish your own HSA. If this is the case, you may still be able to use the HSA funds (if applicable) of the parent or guardian claiming you on their tax return.
  • You participate in a general purpose Healthcare FSA or HRA.
    • If you or your spouse participates in a Healthcare Flexible Spending Account (Healthcare FSA) or a Health Reimbursement Arrangement (HRA) that allows for reimbursement of your medical expenses, you are not eligible to establish a new HSA or make contributions to a current HSA.
  • You use VA or Indian Health Service medical benefits.
    • If you have accessed VA or Indian Health Service medical benefits, you must wait three months from the time of use of those benefits to make contributions to your HSA. This does not include use of VA or Indian Health Service benefits for preventative care, dental, vision, well-baby visits, and immunizations.
  • You are enrolled in Medicare or TRICARE.
    • Once you are enrolled in Medicare or TRICARE, you are no longer eligible to make contributions to your HSA. However, you may still continue to use your funds. If you are age 65 or older, as long as you have not enrolled in Medicare or TRICARE, you may continue to make contributions and use your funds.

For 2022, the contribution limits are $3,650 for single plans and $7,300 for family plans.

If both spouses have an HSA and are eligible to contribute, their total contributions cannot exceed the family maximum, regardless of if they have individual HSA accounts or a family account.

The “catch-up” contribution is $1,000 annually. To be eligible for the catch-up contribution, you must be between the ages of 55 and 65. You are still eligible after the age of 65 if you are not enrolled in Medicare.

We offer three easy ways to contribute funds to your HSA:

Contribute Through Payroll Deduction

Payroll deduction allows you to have contributions taken directly from your paycheck. The funds are deducted pre-tax through your employer’s Section 125 Plan. You may change or stop your contribution amount at any time through your employer. 

Employees should contact their Human Resources department to start payroll deductions.

Contribute Online or By Check

To contribute online, log in to your online account and click Manage My Reimbursement Account. From the home dashboard, select Health Savings Account. Click on the Contributions button, then select Add Contribution.

If you decide to contribute directly to your account, you will need to take the appropriate steps on your annual tax return to receive the tax savings benefit. You may also contribute by check by completing a Contribution Form.1

Transfer Funds from Another Provider

New or existing account holders may roll over or transfer HSA funds from another provider to American Fidelity. This allows you to consolidate your HSA funds into one account, minimizing account maintenance. Contact your HSA provider for instructions.

  1. Log in to your online account and select Manage My Reimbursement Account.
  2. Select Health Savings Account under My Accounts.
  3. Scroll down to the Investment section.
  4. To manage your funds, select View/Trade.

After you log in to your online account, click Manage My Reimbursement Account > My Accounts > Benefit Account Summary > Investment > View/Trade. If a new window does not open automatically, please ensure your pop-blocker is disabled.

View this step-by-step guide to access the investment site.

While viewing your investment account, click Claims and Spending > Access > Benefit Account Summary > Investments > Transfer to Investments. If a new window does not open automatically, please ensure your pop-blocker is disabled.

Enter the amount that you want to transfer next to Transfer Amount. Then click Submit.

A window will open to confirm that your transfer was submitted successfully. Read the information regarding transfer timing and click Close.

You should then see the transaction as a Pending Transfer.

The HSA Guided Portfolio is a planning tool that helps you create an asset allocation that fits into your HSA investment goals and risk tolerance. After completing a few simple questions about your risk tolerance and how you intend to use and access the money in your HSA investment account. A potential allocation mix is provided.

To access the HSA Guided Portfolio, select Tools & Education > HSA Guided Portfolio > Let’s Begin!

Investment account statements are separate from HSA statements. You will be notified by email when your quarterly statement has been posted. If you do not have an email on file, to access your HSA investment statements, you will need to log in to the member website.

To view your quarterly investment statements, select Activity > Quarterly Statements > Download.

Performance is updated monthly and will be viewable from within your online account.

It takes 1-2 business days to transfer money to/from your HSA investment account. The transferred funds are available in 2-4 business days.

Yes, but the money from your HSA investment account will need to be transferred back to your HSA to pay for eligible medical expenses.

You may find a list of available mutual funds by viewing the Fund Performance Dashboard.

Click on Move Money under the Invest menu option. Here you can enter the dollar amount you wish to pull from the investment account back to your HSA deposit account.

The money will be liquidated from your investment account pro-rata according to your current investment allocations from your investment account.

*For example, if you are requesting $100.00 and you are invested 70% in Fund A, 20% in Fund B and 10% in Fund C, the $100.00 will be pulled $70.00 from Fund A, $20.00 from Fund B and $10.00 from Fund C.

Devenir, LLC is a registered broker-dealer, member FINRA/SIPC and is providing brokerage services to you directly or through third parties. Devenir Investment Advisors, LLC, is a registered investment advisor and affiliated company of Devenir, LLC. Devenir Investment Advisors, LLC has selected, and American Fidelity has accepted, certain mutual funds for inclusion in the HSA investment program. Devenir, LLC, Devenir Investment Advisors, LLC and American Fidelity are separate and unaffiliated firms, and are not responsible for each other’s services or policies.

Yes, you can have both an HSA and an IRA.

Although HSAs operate under many of the same rules that apply to traditional IRAs, an HSA is not an IRA; it is a tax-advantaged savings account for current and future medical expenses.

At age 65 and older, your funds continue to be available without federal or state income tax (in most states) for eligible medical expenses. For instance, you may use your HSA to pay certain insurance premiums, such as Medicare Parts A and B, Medicare HMO, or your share of retiree medical coverage offered by a former employer. Funds cannot be used tax-free to purchase Medigap or Medicare supplemental policies.

However, with enrollment in Medicare, you are no longer eligible to contribute to your HSA. If you reach age 65 or become disabled, you may still contribute to your HSA if you have not enrolled in Medicare.

If you use your funds for eligible medical expenses, the withdrawals from your account remain tax-free. If you use the funds for non-eligible expenses after you turn 65, the distribution becomes taxable but exempt from the 20% penalty.

You may not contribute to an HSA if you are enrolled in Medicare. However, you may still use your existing HSA funds for eligible medical expenses tax-free (in most states). If you choose to use the funds for ineligible medical expenses, and you are age 65 and older, you must only pay income tax on the funds—the 20% additional tax penalty does not apply to you. If you are Medicare eligible, but you have not enrolled in Medicare, you are eligible to contribute to an HSA if you meet all other eligibility requirements.

A Benefits Debit Card allows you to pay for eligible expenses, such as over the counter medicine, prescriptions, medical supplies, and copayments. If your employer has elected to provide a Benefits Debit Card, you may use this card instead of paying out of pocket.

You may use it at most health care facilities, including hospitals, physician’s, dental, and vision offices.

Additionally, many merchants also accept the card. To view a list of participating stores, visit SIGIS Store Locator.

Log in to your online account and select Manage My Reimbursement Account. Then, hover over your name on the top right and click Debit Card(s). Click Report Lost or Stolen next to the appropriate card. Once complete, you will have the option to order an additional card.

Report a Card Lost/Stolen 

If you have additional qualified dependents, you may request a card for them through your online account, or on our mobile app, AFmobile®. Here’s how:

  • Online
    1. Log in to your online account.
    2. Select Manage My Reimbursement Account.
    3. Hover over your username the right side of the navigation bar and select Profile.
    4. At the bottom of this screen, select Add Family Member.
    5. In the Add Family Member window, select the box to Issue Dependent Card.
    6. When complete, click Next and Save.
  • AFmobile
    1. Select the Profile, and then select Family Members.
    2. In the Add Family Member window, select the box to Issue Dependent Card.
    3. When complete, click Next and Save.

If you see any suspicious activity with your Benefits Debit Card, report it within 60 days to dispute the charge immediately. The fastest way to dispute a charge is by completing the form online. Here's how:

  • Log in to your online account.
  • Click the Manage My Reimbursement Account button.
  • Expand the fraudulent transaction in either the Claim Activity, Transaction, or Account Activity page.
  • Complete and e-sign the dispute form.

You can also dispute a charge by calling us at 800-662-1113.

No additional action is needed on resolved transactions. Please review your transaction history for reimbursement information.

Your Benefits Debit Card is for eligible medical expenses only. Check out this list of HSA eligible expenses

No. You do not need to provide documentation for your Benefits Debit Card purchases. However, you should keep all medical documentation as proof of transactions in case of an Internal Revenue Service (IRS) audit.

Yes, you may use your Benefits Debit Card for both accounts. Eligible vision and dental expenses will be deducted from your LPFSA first, because those funds expire at the end of your plan year. When your LPFSA funds have been used up, your HSA funds will be deducted.

When you use your Benefits Debit Card to pay for eligible medical expenses, the amount is deducted straight from your account. Here are other methods of paying for eligible medical expenses:

Out-of-Pocket

With an HSA, funds are available in your account as contributions are made. If funds are not yet available at the time a payment is due, you may pay out of pocket and reimburse yourself when you have funds in your account with the following methods:

Online Bill Pay 

You can choose to reimburse yourself for any eligible medical expenses or pay your provider directly from your online account using our online bill pay option.

Rates and Account Fees

Interest Rates & Annual Percentage Yield (APY)1

Daily Balance

Rate

APY

$0.00 - $500.00

0.00%

0.00%

$500.01 - $2500.00

0.09%

0.09%

$2500.01 - $5000.00

0.12%

0.1201%

$5000.01- $10000.00

0.15%

0.1501%

$10000.01+

0.25%

0.2502%

Fees

Service

Fees

Set-up Fee2 (one time or waived with electronic enrollment)

$10.00

Monthly Maintenance Fee3

$2.00

Withdrawal Processing Fee

Included

Manual Distribution Form

$10.00

Deposit Item Return, Excess Contribution Withdrawal, Mistaken Distribution Return, Stop Payment

$15.00

Investments (stocks, mutual funds)4

Included

Trade Fees

Included

Quarterly Statements

Included

Reissue of Reimbursement Check, Corrected IRS Filing Fee/copy, Rollover/Transfer, Wire Transfer, Account Closure, Research on Account/Debit Card Transactions

$25.00

Miscellaneous Fees5 (if applicable, fee is charged per transaction)

Per Transaction

 

How to Use Your HSA

If your employer offers a High Deductible Health Plan, your HSA can help you with eligible out-of-pocket expenses.

Learn More About HSAs 

 

HSA Features

Rolling Balance

Balance may be rolled over year-to-year and doesn’t expire

Portable

You own the account—take it with you wherever you go

Invest

Funds may be invested in a variety of accounts

Flexible

Start, stop, or change contributions at any time, subject to plan provisions

HSA Articles

Shop for Eligible Items on the HSA Store

You may purchase HSA-eligible items online at the HSA Store. Browse medical supplies, over-the-counter medication, prescriptions, and more.