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Medical expenses can be hard to predict. That’s why it pays to plan ahead. The good news is, if you have a high deductible health plan, you’re eligible for a savings tool that includes significant tax advantages: A health savings account.A health savings account (HSA) can be used to pay qualified medical expenses today, tomorrow and throughout your retirement years. Like a Flexible Spending Account (FSA), it’s funded with pre-tax dollars—but it’s not a “use-it-or-lose-it” account. Your balance carries over each year, and can be invested once it reaches a certain threshold.Handle healthcare costs with confidenceHealth Savings Accounts oered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by WEX Inc.This highlights some of the benefits of a Health Savings Account. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and WEX Health, Inc. reserve the right to amend or modify the services at any time.The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will aect tax savings. None of the information provided should be considered tax or legal advice.Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.Living today,Planning for tomorrowHealth Savings Accounts from Voya Financial ®207895_P0099021.indd 1207895_P0099021.indd 1 09/12/2021 03:3909/12/2021 03:39
1 Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss. 2 The list of eligible expenses are set by federal regulations and are subject to change. Contact your Plan Administrator for more information or visit www.irs.gov for details. The amount you save in taxes will vary depending on the amount you set aside in the account, your annual earnings, whether or not you pay Social Security taxes, the number of exemptions and deductions you claim on your tax return, your tax bracket and your state and local tax regulations. Check with your tax advisor for information on whether your participation will aect your tax savings. Health Savings and Spending Accounts, including Health Savings Accounts, Flexible Spending Accounts, Commuter Benefits, Health Reimbursement Arrangements, and COBRA Administration oered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Administration services provided by WEX Health, Inc., and Benefit Strategies, LLC.3 Source: Employee Benefit Research Institute, Issue Brief, 2018The average American couple will need $296,000 to cover out-of-pocket healthcare costs in retirement.3 Be ready for tomorrow—and today—with a Health Savings Account from Voya Financial.SaveBenefit from four tax advantages as you save for healthcare expenses.GrowBuild your balance year after year; it’s yours to save or invest.1SpendSpend on medical expenses today, plus medical and non-medical expenses after age 65.2207895_P0099021.indd 2207895_P0099021.indd 2 09/12/2021 03:3909/12/2021 03:39
HSAs oer tax advantages that you can’t get anywhere else. Pre-tax money goes in and tax-free money comes out (when it’s being used for qualified expenses). You’ll benefit in these four ways: No federal (or state, in most cases) taxes No FICA (social security and Medicare) taxes Tax-free investing within your account Tax-free withdrawals for qualified medical expensesContribute pre-tax dollars up to an annual maximum.You can contribute to your HSA up to the annual per-person or family limit set by the IRS. You’ll be able to take tax-free withdrawals for qualified medical expenses whenever you need them, and the account stays with you—even if you change employers.2022 Annual MaximumsBoth you and your employer may contribute to your account; the annual maximum applies to your combined contributions Save more with unique tax benefits1234 Individual Coverage: $3,650 Family Coverage: $7,300 Catch-Up Contribution: $1,000 (allowed for those age 55 and over) 207895_P0099021.indd 3207895_P0099021.indd 3 09/12/2021 03:3909/12/2021 03:39
Once a contribution is made, whether it’s by you or your employer, it’s yours to manage as you choose. The balance will roll over year after year, and once it reaches the investment threshold you’ll have the option to invest it in mutual funds carefully selected by Voya’s in-house Investment Management team. (As with any investment, there are risks; make sure to fully explore those risks before choosing to invest your balance.)As you work toward retirement, you’ll be able to make withdrawals as needed for qualified medical expenses. At age 55, you can contribute an additional $1,000 each year. Then, after age 65 you’ll be able to make withdrawals for non-medical expenses; the only dierence is they’ll be taxed as ordinary income, just like withdrawals from a 401k or IRA.Unlike a 401k or IRA, your HSA contributions aren’t subject to FICA taxes and you aren’t required to take minimum distributions at any age. Grow over time as you save or investInvested vs. SavedHere’s how much of a dierence it potentially could make if you invested an annual contribution of $7,300 vs. simply saving it:Investing $611,752.24Not investing $219,000.00Years01 3 5 7 9 11 13 15 17 19 21 23 25 27 29 30* For illustrative purposes only. Assumptions: 30-year investment timeframe; annual contributions of $7,300; 6% annual return on investment; Interest compounded annually; 0% return on cash; no withdrawals. This hypothetical example does notrepresent the performance of any particular investment and is not a guarantee of future results. The illustration doesnot consider investment fees or expenses that would lower performance. Actual rates of return will fluctuate.$150,000$300,000$450,000$600,000$750,000207895_P0099021.indd 4207895_P0099021.indd 4 09/12/2021 03:3909/12/2021 03:39
When you reach age 65 and elect Medicare coverage, you are no longer eligible to contribute to your HSA. However, the account’s balance can still be invested and/or used for medical and non-medical expenses.4 TIAA-CREF, Borrowing Against Your Futures Survey, 2014Match, then max outDid you know that more than one-third of hardship withdrawals from retirement accounts like 401ks and IRAs are caused by medical expenses?4 Avoid hassles, headaches and potential penalties by maximizing what you save in your HSA.Because of the unique advantages HSAs oer, some retirement professionals recommend contributing to both your HSA and 401k up to your employer’s match, and then shifting your focus to funding your HSA up to its annual maximum.207895_P0099021.indd 5207895_P0099021.indd 5 09/12/2021 03:3909/12/2021 03:39
When you choose an HSA from Voya Financial, you’ll get a debit card that makes paying for healthcare expenses quick and easy. You’ll also get access to a secure website where you can view account activity, plus a mobile app that makes it easy to capture receipts and reimburse yourself on the go. Spend easily, anytime you need itReady to get started? Make sure you’re eligible.To be eligible for an HSA, you must have a high deductible health plan. As you explore your health plan options, you’ll need to balance your decision making between:HSA-eligible Not HSA-eligible• Most “consumer directed” plans.• May have lower premiums.• Also may have higher out-pocket-costs.• Deductible is at least $1,400/individual or$2,800/family.• Most “traditional” plans (PPOs, HMOs, etc.)• May have higher premiums.• Also may have lower out-of-pocket costs.• Deductible is less than $1,400/individual or$2,800/family.207895_P0099021.indd 6207895_P0099021.indd 6 09/12/2021 03:3909/12/2021 03:39
Should you add a Limited Purpose FSA?When you open an HSA, you may also have the option to add a limited-purpose FSA. This can be helpful if you know you’ll have vision or dental expenses like glasses, contact lenses, orthodontia care or other qualified expenses in the coming year, but still want to maximize what you can put into your HSA. A limited-purpose FSA can only be used for certain eligible vision and dental expenses until your medical plan’s deductible is met. One important note: It’s a “use-it-or-lose-it” account that won’t roll over at the end of the year. Use your HSA for expenses* like:• Oce visit, X-rays, lab work• Hospital expenses• Prescription drugs• Dental cleanings, fillingsand crowns• Co-pays and co-insurance• Eye exams, glasses and contacts• Over-the-counter healthcareitems (like bandages, contactlens solution, thermometers andmore)* For a complete list of qualified expenses,contact your Plan Administrator or visit irs.govand search for Publication 502: Medical andDental Expenses.The road to retirement doesn’t always go as planned. Be prepared—today and tomorrow—with a Health Savings Account from Voya Financial.Save, grow and spend your healthcare dollars with Voya Financial207895_P0099021.indd 7207895_P0099021.indd 7 09/12/2021 03:3909/12/2021 03:39
Health Savings Accounts oered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by WEX Inc.This highlights some of the benefits of a Health Savings Account. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and WEX Health, Inc. reserve the right to amend or modify the services at any time.The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will aect tax savings. None of the information provided should be considered tax or legal advice.Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.©2021 Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). All rights reserved. WLTP0099021. 924971207895-09012020207895_P0099021.indd 8207895_P0099021.indd 8 09/12/2021 03:3909/12/2021 03:39