How the HSA Works
Eligible Expenses
Examples of eligible expenses include doctor’s office visits, eye exams, prescription expenses, dental and LASIK surgery. IRS Publication 502 provides a complete list of eligible expenses and can be found at
www.irs.gov/pub/irs-pdf/p502.pdf.
Individually Owned Account
You own and administer your HSA. You determine how much you will contribute to your account, when to use the money to pay for qualified medical expenses and when to reimburse yourself. HSAs allow you to save and “roll over” money if you do not spend it in the calendar year.
The money in this account is always yours, even if you change health plans or jobs. There are no vesting requirements or forfeiture provisions.
How to Enroll
CDHP Participants
When you enroll in the CDHP, you will need to complete your HSA enrollment and designate the amount you wish to contribute on a pre-tax basis. You must also complete bank account enrollment information to allow DallasNews Corporation to establish your account in your name and send your contribution.
Once you open your HSA bank account at
www.401k.com, Fidelity will issue you a debit card, giving you direct access to your account balance. Any time you have a qualified medical expense, you may use your debit card to pay. You must have funds available in your HSA to use your debit card. You do not need to submit receipts for reimbursement. However, you should keep records to validate eligible expenses in case you are audited.
Tax Savings
Contributions to an HSA are tax-free. If you are a CDHP participant, they can be made through payroll deduction on a pre-tax basis when you open an account with Fidelity.
The money in this account, including interest and investment earnings, grows tax-free.
As long as the funds are used to pay for qualified medical expenses, they are spent tax-free.
Refer to IRS Publications 502 and 969 for more information.