Health Savings Account (HSA)

5 Ways You Win with an HSA

The HSA is built for the long haul. You can spend HSA dollars on current eligible health care expenses, save them for future expenses (even in retirement), or do both—all while you’re saving on taxes. It’s an all-in-one spending account, savings tool, retirement plan, and tax shelter! Here are the ways your HSA can help you take your financial game to the next level:

1. It’s triple tax-advantaged. You pay no federal taxes on contributions to your account, withdrawals for eligible expenses, or interest and investment earnings. Your contributions reduce your taxable income, too.
2. You can use your HSA funds to cover your and your tax dependents’ eligible medical, dental, and vision expenses, even if they’re not covered by a FanDuel medical plan.
3. Your HSA is yours to keep, even if you change health plans, leave FanDuel, or retire.
4. The money in your HSA continues to earn interest and grow, year over year, until you use it.
5. For more growth potential, you can invest your balance at any time! Just make sure you maintain a balance to pay ongoing claims.

So, How Much Can You Contribute?

We’d love to say the sky’s the limit, but the IRS determines how much you can contribute to your HSA every year. For 2024, the maximum is $4,150 if you have individual medical coverage and $8,300 with family coverage. If you’re 55 or older, you can add another $1,000.

And don’t forget FanDuel’s contribution: $700 for individual coverage and $1,200 for family coverage for the year. Keep in mind that the IRS limits are the total of your and FanDuel’s contributions—and you don’t want to exceed them! You’ll pay regular income tax plus a 10% penalty on any excess contributions.

You can change your contributions at any time by visiting HealthEquity.

Open to (Almost) Everyone

For such a VIP benefit, there are surprisingly few restrictions on who can participate in the HSA. The only big requirement? You have to be enrolled in the Consumer Advantage with HSA medical plan. Once you enroll and you elect the HSA, you’ll automatically receive FanDuel’s contribution. Then you can visit HealthEquity to set up your member profile.

Keep in mind that you can’t contribute to an HSA if you’re:

• Enrolled in Medicare
• Contributing to the Health Care Flexible Spending Account (FSA) for medical expenses*
• Claimed as a dependent on someone’s tax return
• Covered by another group health plan which is deemed disqualifying coverage (non-HDHP health plan or a Health Care FSA through a spouse)

What You Can Spend Your HSA $$$ On

The short answer: most medical, dental, and vision expenses. But here are some of the specific expenses your HSA covers, per the IRS:

• Doctor and hospital visits
• Prescription drugs
• Over-the-counter drugs and health care supplies
• Prescription eyewear and supplies
• Dental treatment
• Lab fees
• Feminine care products
• Medicare premiums

For a full list of eligible expenses, take a look at IRS Publication 502, Medical and Dental Expenses.