1. With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.
2. Spending HSA money is tax-free when used to pay for qualified medical expenses.
3. Opening an HSA with a third-party provider, other than your employer, may limit your opportunity to use pre-tax payroll contributions. Although post-tax contributions are federal income tax-deductible, you will be required to pay FICA taxes. This means third-party HSAs may not be as tax-advantaged as employer-provided HSAs.
4. Zero account fees apply only to retail brokerage accounts.
The information provided herein is general in nature. It is not intended, nor should it be construed, as legal or tax advice. Because the administration of an HSA is a taxpayer responsibility, you are strongly encouraged to consult your tax advisor before opening an HSA. You are also encouraged to review information available from the Internal Revenue Service (IRS) for taxpayers, which can be found on the IRS website at IRS.gov. You can find IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, and IRS Publication 502, Medical and Dental Expenses, online, or you can call the IRS to request a copy of each at 800.829.3676.
Investing involves risk, including risk of loss.