Top 5 Benefits of a Health Savings Account

2. Other Contributions
HSAs do not have to be funded exclusively by employers and employees. Other people can contribute to an HSA as well.
Annual limits are still in place, but everyone from an employee's parents to her best friend from high school can
contribute to her account if they so choose.
3. Benefit Portability
Unlike health insurance plans, employees own their HSAs. That means the accounts are portable. An employee with
several thousand dollars in his HSA takes that money with him should he change jobs. The new employer can contribute
to the account as well.
4. Rolling over Unused Funds
Even though HSAs come with contribution limits, there is no mandate to actually spend the money. Any money left over
at the end of the year automatically rolls into the following year while contribution limits are reset. In simple terms,
employees can continually accumulate funds in their HSAs until a genuine need arises.
There is a caveat here: the IRS considers transferring funds from one HSA to another as a rollover. There are some
conditions on such activity. First of all, only one such transfer is allowed per 365 days. So if an employee makes a
transfer on June 1, another transfer cannot be made until June 1 the following year.
The second condition stipulates that the employee must complete the transfer within 60 days of withdrawing from the
original HSA. Miss that 60-day deadline and the withdrawn money is now subject to taxation.
5. Qualifying Expenses
Finally, HSAs cover many more qualifying expenses than most people know. You can use money in an HSA to pay for
prescription medications, cover the co-pay for an office visit, or even pay for tests or treatments your medical insurance
will not cover. And because most HSAs these days issue debit cards, making payment is quite convenient.
Combining HSAs with HDHPs is one way to address the medical plan component of your benefits package. It is at least
worth looking into if your company does not currently offer an HSA.