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Scenario - Single Male
Steven is a healthy single male whose employer provides an HSA Qualified Health Plan and Sponsors a MyHealthFunds account. He sets up an automatic HSA contribution of $100 per month. Since he's saving over $100 per month in premiums, there's no additional out of pocket expense to fund his HSA.
Steven is earning 2% interest tax-free and if he makes any post tax contributions, he'll get to deduct them from his taxable income.
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1st Year
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Annual Contribution
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$1,200.00
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Medical Expenses paid from HSA
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$200.00
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Ending Balance
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$1,000.00
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2nd Year
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Annual Contribution
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$1200.00
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Rollover from 1st year
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$1000.00
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HSA Balance
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$2200.00
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Medical Expenses paid from HSA
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$600.00
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Ending Balance
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$1600.00
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Scenario - Married, No Children
The Davidson's are a newlywed couple who are concerned about their family's future health and financial well being. Jim Davidson participates in his employer's HSA Qualified Health Plan and his MyHealthFunds account. He makes a monthly pre-tax contribution of $300 per month. His employer also contributes $100 per month to his HSA.
After only 1 year, the Davidson's have enough money in their HSA to cover their entire family deductible of $4000.00. With a baby on the way, they will have 100% coverage after the deductible is met and still have over $2400.00 in their HSA earning interest.
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1st Year
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Employer Contribution
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$1,200.00
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Employee Contribution
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$3,600.00
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Medical Expenses paid from HSA
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$750.00
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Ending Balance
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$4,050.00
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2nd Year
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Annual Contribution
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$4,800.00
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Rollover From 1st Year
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$4,050.00
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HSA Balance
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$8,850.00
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Medical Expenses paid from HSA
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$1,200.0
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Ending Balance
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$6,450.00
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Scenario - Family
The Cortez family had a new baby 6 months ago. Mr. Cortez's company just started with MyHealthFunds and is offering an HSA Qualified Health Plan. Mr. Cortez didn't realize how much he was paying under his old plan but now he's able to fund his HSA and save money on his taxes, all while keeping more money in his pocket.
Well baby & well child preventative visits are covered at 100% without the deductible so there is no cost to the Cortez family for things like immunizations and vision/hearing screenings for their baby.
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1st Year
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Employer Contribution
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$1,200.00
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Employee Contribution
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$2,400.00
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Medical Expenses paid from HSA
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$1,500.00
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Ending HSA Balance
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$2,100.00
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2nd Year
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Annual Contribution
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$3,600.00
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Rollover from 1st Year
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$2,100.00
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HSA Balance
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$5,700.00
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Medical Expenses paid from HSA
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$1,200.00
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Ending HSA Balance
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$4,500.00
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Scenario - Retired
The Jameson's are an older couple and have higher medical expenses that they were paying out of pocket using after-tax dollars. Because of his age, Mr. Jameson is eligible to make additional 'catch-up' contributions to the HSA. Now with the HSA program, they are able to save money, save on taxes, and earn interest tax-free.
The Jameson's have a family deductible of $4000.00 that they paid using tax-free HSA funds. Their HSA Qualified Health Plan has an Out of Pocket Maximum that matches their deductible, so all services after the $4000.00 are covered at 100% by the insurance company. They also are able to take an "off the top" tax deduction of $800.00 without having to itemize.
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1st Year
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Employer Contribution
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$2,400.00
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Employee Contribution (Pre-tax)
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$2,400.00
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Employee Catch-up 2007 (Post-tax)
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$800.00
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Medical Expenses paid from HSA
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$3,500.00
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Ending HSA Balance
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$2,100.00
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2nd Year
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Annual Contribution + Catch Up ($900 for 2008)
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$5,600.00
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Rollover from 1st Year
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$2,100.00
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HSA Balance
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$7,700.00
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Medical Expenses paid from HSA (Family Deductible)
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$4,000.00
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Ending HSA Balance
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$3,700.00
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