Health Savings Account (HSA)

Overview

If you enroll in MAP Plus Option 2 and meet all other IRS requirements, consider contributing to the AAA Investments HSA. You can make your contributions through convenient tax-free payroll deductions to save for your current or future health care needs.

You can choose the amount you want to contribute. Select an amount for convenient pre-tax payroll deductions, up to IRS limits for 2020:

  • Employee Only coverage – up to $3,550
  • Any other coverage tier – up to $7,100
  • If age 55 or older – up to an additional $1,000

The contribution election you make during annual enrollment automatically carries over to the next year (as long as you remain in MAP Plus Option 2). You may change your contribution amount during annual enrollment or at any time from January through December (as long as any change to your election for December is received by November 30th).

Things to know.

How you use your HSA money is up to you. You can use it like a regular bank account to pay the health care bills you have today – or a savings or investment account that you can grow and use for health care bills in the years to come.

You will not lose what you do not use. The money remains in your account and can grow tax-free over time. This makes the HSA a great way to save for future needs, including in retirement. Even if you leave ABC Company, all contributions and earnings are yours to take with you.

Paying is easy with the debit card. You can pay your provider directly using the HSA debit card and skip completing forms and submitting receipts. Note: Keep your receipts for your tax records.

Use your HSA dollars tax free. Pay for qualified non-preventive care, as well as dental and vision costs. For all qualifying expenses, refer to IRS Publication No. 502.

5 reasons a Health Savings Account (HSA) and MAP Plus Option 2 make a great pair.


  1. Cost effective. MAP Plus Option 2 is the most cost-effective option for many employees – it could save you money even if you are managing a major health condition. With an HSA, you can save even more.
  2. Essential coverage with tax savings. The MAP Plus Option 2 coverage works hand-in-hand with an HSA to provide coverage for the care you need and opportunities to save on taxes. With an HSA, you contribute, save and spend your money without ever paying a dime in taxes (as long as you use your dollars for qualified expenses).*
  3. Goes beyond medical. In addition to medical, MAP Plus Option 2 covers an annual eye exam. The HSA adds to this, allowing you to pay tax-free for dental services, vision care, eyewear, prescription drugs and more.
  4. Makes you money. Put your money to work for you in your HSA with the potential to earn tax-free interest and investment returns. It’s a great way to grow your dollars to help cover your qualified health care expenses. You can choose to invest your HSA dollars once your balance reaches the required threshold (generally $2,500 for most investment options). Keep in mind that investments can decrease in value.
  5. Builds over time. Your HSA money rolls over from year-to-year, building up over time to use for your future health care needs.

* Some states do not follow federal rules for HSAs and state taxes may apply. In New Hampshire and Tennessee, state taxes apply on investment gains. In Alabama, California and New Jersey, state taxes apply on both investment gains and withdrawals (even when used for qualified health care expenses).

Your HSA is an individual bank account in your name. This account is not maintained, sponsored or endorsed by ABC Company. Your HSA may accrue income or interest or suffer losses in accordance with the terms of the agreement between you and AAA Investments — the HSA custodian. You are solely responsible for managing your HSA to ensure that contributions qualify for favorable tax treatment and that funds are used only for eligible expenses. HSAs are not subject to a claims process. Making or receiving contributions to an HSA when you are not eligible, or withdrawing HSA funds for expenses that are not eligible, will generally result in tax penalties. You should consult your tax advisor.

Tools and resources.

Looking to connect with XYZ?

Phone: 877-444-0015 | Website: www.netbenefits.com/abccompany | App: Apple App Store and Google Play

You can also learn more about HSAs from the U.S. Department of Treasury.