Video Transcript: Optum Bank - Tax Time and Your HSA

Want to save money on taxes?

(OPTUMBank® Logo)

It’s easy with your OPTUMBank® Health Savings Account or HSA.

With your HSA you can save on taxes 3 different ways.

First contributions to your HSA go in income tax free.

Second any money you take out of your account to pay for qualified medical expenses is also income tax free.

Third any money you save or invest grows income tax free.

And what happens when you make a post-tax contribution to your HSA? Don’t worry you will receive those tax benefits at tax time when you file your income taxes.

(Graphic of calendar with the date April 15^th circled)

Added all up and it’s more money for you and less for Uncle Sam.

When it comes time to do your taxes you’ll have to gather some information about your HSA.

It’s actually pretty easy you basically need to know about 3 IRS Forms, linked to health savings accounts.

Form 1099-SA tells you the total distributions or payments that were made from your HSA.

Form 5498-SA summarizes the contributions or deposits you made to your HSA in a particular tax year.

You can also find your contribution information on your December HSA statement.

Form 8889 this is the form you’ll actually submit with your federal income tax return.

This could be filled out using the information from your 1099-SA and 5498-SA.

Keep in mind everyone receives Form 5498 (Form 5498-SA).

But you’ll only receive form 1099 (Form 1099-SA) if you had distributions that year.

If you didn’t reach a maximum contribution limit but want to capitalize the tax savings it’s no problem.

You generally have until the tax filing deadline to make a contribution to your HSA for the previous tax year.

(Graphic of calendar flipping to April 15^th)

Another tax tip, make sure you understand the HSA rules where you live. Certain states have special rules regarding HSA’s so it’s a good idea to touch base with a tax adviser to ensure you’re flying your taxes correctly.

And you can always find additional help and resources online at IRS.gov or at Optumbank.com

Save smart, save tax free.

(OPTUMBank® Logo)

Health savings accounts (HSAs) are individuals accounts offered or administered by OPTUMBank®, Member FDIC, and are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change.