The Health Savings Account Plans puts you in the driver seat when it comes to saving money for you and for SBD. An HSA is a tax-advantaged personal savings account designed to complement a qualified high-deductible health plan (HDHP). You can use an HSA to pay for medical, prescription drug, dental, vision and other qualified expenses now or later in life. The funds can even be invested, making it a great addition to your retirement portfolio.
In a HSA plan, SBD contributes money to your HSA bank account. You may also make contributions to your HSA bank account, up to IRS imposed annual limits. It is your responsibility to make sure your pre-tax deductions don’t exceed IRS limits. The SBD contribution to your bank account is deposited at the beginning of the plan year. The dollars you contribute to your account are tax-free, as are any investment earnings or interest earned on the contributions. Plus, your funds are tax-free when you withdraw them to pay for eligible health expenses.
When you elect an HSA medical option, you must complete an attestation to confirm eligibility for an HSA bank account per IRS regulations. An HSA account will be automatically set up with HSA Bank and a debit card will be mailed to you. If you receive a letter from HSA Bank after you enroll asking you to verify your address or personal data, you must respond within 90 days. If you do not respond, you will not have access to the funds in your account and you will forfeit the Stanley Black & Decker contribution for the plan year. You must complete the CIP verification process prior to accessing funds in your HSA Bank account.
An HSA account stays with you always. The unused money in your account rolls into subsequent calendar years. Even if you leave SBD, you can take the account with you. You can use the money in the account to pay for qualified expenses and post 65 retiree health plan premiums. The SBD contribution to your bank account is deposited at the beginning of the plan year. The dollars you contribute to your account are tax-free, as are any investment earnings or interest earned on the contributions. Plus, your funds are tax-free when you withdraw them to pay for eligible health expenses.
If you are not sure if the HSA medical plan is for you, use ALEX your virtual benefits advisor. This comparison tool will help you determine if the plan is right for you.
