When you enroll in Medical Plan Option C, you may participate in a Health Savings Account, or HSA. An HSA is a tax-advantaged savings account you can use to pay for eligible health care expenses now and in the future. The HSA is a savings account — meaning you can save the money until you need it most. Whether you need it now, a few years down the road or after you retire, the money in your HSA is yours to use for eligible health care expenses whenever you choose, even after you leave the Firm.
The account is triple-tax advantaged, which means that:
- Before-tax paycheck contributions lower your taxable income.*
- Investment earnings grow tax-free. (Note: Once your HSA balance reaches $500, you may invest funds over that amount, choosing from a menu of investment options).
- Distributions are tax-free when you use HSA dollars to pay for eligible health care expenses.
*You may also make lump-sum contributions to your HSA at any time.