Health Savings Accounts for Texas School Employees

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  • Budgeting for Baby: HSA Approved Pregnancy & Baby Products

    Budgeting for Baby: HSA Approved Pregnancy & Baby Products

    What Expenses to Expect When You’re Expecting

    Pregnancy is an incredibly exciting and transformative time in a woman’s life, but it can also bring about various expenses. Fortunately, if you have an HSA, you may be able to utilize its benefits to cover a wide range of essential pregnancy and must-have baby items while enjoying valuable tax advantages.

    Check out all the eligible baby/pregnancy related items below (as well as those that aren’t eligible). You can also shop directly from the HSA Store.

    Qualified Expenses

    Baby Breathing Monitor Baby Rash Ointment and Cream Baby/Children’s Sunscreen
    Birth Control/Contraceptives Birthing Coach* Birthing Classes*
    Breast Milk Storage Bottles or Bags Breast Pump Breast Pump Bustier
    Breastfeeding Classes Childbirth Child Medical Care
    Childbirth Classes Circumcision Diaper Rash Cream & Ointment
    Disposable Bra Pads for Nursing Doula* Egg and Embryo Storage Fees*
    Egg Donor Fees* Egg Recipient Fees* Electrolyte Replacements (Baby)
    Feminine Hygiene Products Fertility Enhancement Fertility Monitor
    Fertility Treatment Gel Breast Pads Hospital Care
    Hospital Insurance Premiums Infant Formula* Infertility Treatment
    Kids Training Pants* Lactation Consultant Lamaze Classes
    Lanolin Pregnancy Aids Pregnancy and Fertility Kits
    Pregnancy Tests Prenatal Vitamins Prenatal Ultrasound
    Sanitary Pads Sea-band for Motion Sickness Sitz Bath
    Ultrasound Umbilical cord blood storage* Vaccinations

    Ineligible Expenses

    Adoption After-School Care Agency Fee for Child Care
    Baby Bottles Baby Oil Baby Powder
    Babysitting/Childcare Car Seats Daycare
    Diapers Surrogate Mother Maternity Clothes

     

    *Indicates that item is only eligible with a Letter of Medical Necessity (LMN). To view the full list of qualified medical expenses, visit www.irs.gov and view IRS Publication 502. If you are unsure if something qualifies as an eligible expense, we recommend consulting with a licensed tax advisor.

  • Why Invest In Your HSA

    Why Invest In Your HSA

    Why Invest?

    This video outlines the key facts of why investing a portion castillosenaragon.org of your HSA may produce better results than just a deposit balance.

  • The CARES Act

    The CARES Act

    The Coronavirus Aid, Relief and Economic Security Act

    The Coronavirus Aid, Relief and Economic Security Act, or also known as the CARES Act, was passed by congress to help give Americans some relief due to the economic impact that COVID-19 has had on our society. The temporary rules under the CARES Act apply to services provided on or after Jan. 1, 2020, with respect to plan years beginning on or before Dec. 31, 2021.
     
    Additional Qualified Medical Expenses
    The CARES Act has added some new items to its list of Qualified Medical Expenses:

    • Telehealth / Remote Care Services
    • Menstrual Care Products – Tampons, pads, liners, cups, sponges, etc.
    • OTC Products & Medications (No prescription needed) – Advil, Tylenol, cough syrup, etc.

     
    Remember to keep copies of your receipts for proof that your purchase was a qualified medical expense. For more information, visit the IRS CARES Act page by clicking here, or consult with a licensed tax-advisor.

  • Comparing HSAs and FSAs

    Comparing HSAs and FSAs

    Health Savings Accounts vs Flex Spending Accounts


    Health Savings Account

    Flex Spending Account
    Qualifications Must be enrolled in HDHP. Cannot be enrolled in additional non-HDHPs or Medicare. None
    Health Plan High Deductible Health Plan (HDHP) Any
    Contribution Limit Individual Coverage: $3,600. Family Coverage: $7,200 TBD
    Catch-Up Contributions Individuals 55 or older may make an additional $1,000 in contributions each year. Not allowed.
    Changing Contributions Contribution amounts can be changed at any time. Contribution amounts can only be adjusted during open enrollment or due to a qualifying life event.
    Additional Contributions You can make additional contributions at any time, up to your yearly contribution limit. Not allowed.
    Effect on Taxes Contributions are tax-free Contributions are tax-free
    Do I earn dividends? Yes No
    Investment Options You can invest your HSA dollars to earn even more money on your tax-free contributions. No investment options allowed.
    Does my money rollover? Yes! Any unused funds in your HSA rolls over each year. FSAs have a “use it or lose it” policy. Any funds not used by the end of your plan year are forfeited.
    Account Ownership You own your HSA. If you ever leave the district, your HSA funds & dividends accrued are yours to take with you. Your FSA is owned by the district. If you change employment you will forfeit your FSA & the funds contributed.
    Availability of Funds Funds are available as contributions are made. Your full election amount is available on the first day of the plan year.
    Retirement Unused HSA funds that you have saved, as well as dividends earned & invested, may be withdrawn after age 65. Your FSA is owned by the district. Once you retire, your FSA is closed.
    Qualified Expenses HSA funds may be used for deductibles, medical co-payments, prescription drugs, vision & dental bills. HSA funds may be used for deductibles, medical co-payments, prescription drugs, vision & dental bills.
    Non Medical Expenses Non-medical expenses before age 65 are subject to a 20% penalty & must be reported on your taxes. No access to funds for non-medical reasons.
    Paying Expenses HSA Debit Card FSA Debit Card or Claim Form