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.
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:
- The money you put in is tax-deductible, up to the annual 2022 IRS limit ($3,650 single, $7,300 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 expenses
Employees have the option to change HSA contributions throughout the year.