Health Savings Accounts (HSA)

What is a Health Savings Account (HSA)?

An HSA is a tax-advantaged personal savings account that can be used to pay for medical, dental, vision and other qualified expenses now or later in life. To contribute to an HSA you must be enrolled in a qualified high-deductible health plan (HDHP) and your contributions are limited annually. The funds can even be invested, making it a great addition to your retirement portfolio.

Can I have an HSA and an FSA?

You can’t contribute to an HSA and FSA within the same plan year. However, you can contribute to an HSA and a limited purpose FSA, which only covers dental and vision expenses.

As per IRS Publication 969, an employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally can’t make contributions to an HSA. An employee is also not HSA-eligible during an FSA Grace Period. An employee enrolled in a Limited Purpose FSA is HSA-eligible.

As a married couple, one spouse cannot be enrolled in an HSA at the same time the other is contributing to an FSA. HSA coverage extends tax benefits to family members allowing the HSA holder to be reimbursed for medical expenses for themselves, their spouse, and their dependents.

Why should I participate in an HSA?
Funds contributed to an HSA are triple-tax-advantaged.

1. Money goes in tax free: Most employers offer a payroll deduction through a Section 125 Cafeteria Plan, allowing you to make contributions to your HSA on a pre-tax basis. The contribution is deposited into your HSA prior to taxes being applied to your paycheck, making your savings immediate. You can also contribute to your HSA post-tax and recognize the same tax savings by claiming the deduction when filing your annual taxes.
2. Money comes out tax-free: Eligible healthcare purchases can be made tax-free when you use your HSA. Purchases can be made directly from your HSA account, either by using your benefits debit card, ACH, online bill-pay, or check – or, you can pay out-of-pocket and then reimburse yourself from your HSA.
3. Earn interest, tax-free: The interest on HSA funds grows on a tax-free basis. And, unlike most savings accounts, interest earned on an HSA is not considered taxable income when the funds are used for eligible medical expenses

Frequently Asked Questions

What Expenses Are Eligible For Reimbursement? Health plan co-pays, deductibles, co-insurance, vision, dental care, and certain medical supplies are covered. The IRS provides specific guidance regarding eligible expenses. (See IRS Publication 502).

Am I Eligible To Participate? In order to contribute, you must be enrolled in a qualified HDHP, not covered under a secondary health insurance plan, not enrolled in Medicare, and not another person’s dependent. There are no eligibility requirements to spend previously-contributed HSA funds.

Can I Change My Election During The Plan Year? Yes. You will not be subject to the change-in-status rules applicable to other benefit accounts. You will be able to make changes in your contributions by providing the applicable notice of change provided by your employer.

How Can I Submit A Claim? Claims may be uploaded to your account on our participant Flores247 Web Portal, www.flores247.com, or using our Flores Mobile app. You may also submit your request for reimbursement via fax or mail, if you prefer. Please note that all claims must be received by the filing deadline for the applicable plan year in which your expenses were incurred.

Do I Have To Spend All My Contributions By The End Of The Plan Year? No. HSA money is yours to keep. Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year; it continues to grow, tax-deferred.

For more information, please refer to the Flores HSA FAQ page.

How Do I Obtain My Account Details?

Website: Visit www.flores247.com and log in using Participant ID or User Name and password

Mobile App: Download our mobile app from your app store: Apple Store | Google Play Store

PID & Password Assistance: Dial 800-840-7684

How Do I Submit Documents To Flores?

Online: Visit www.flores247.com and upload documents securely

Mobile: Download our mobile app from your app store: Apple Store | Google Play Store

Mail: Flores & Associates, LLCPO Box 31397 Charlotte, NC 28231

Fax: 800.726.9982 or 704.335.0818