An HSA is a tax-advantaged savings account that you can use to cover current or future health care expenses. Plus, whether or not you contribute your own pre-tax dollars, Lithia & Driveway adds money to your account.
Good to Know
The HSA, administered by WEX, is a smart way to save and pay for your health care. The best part is that you get to save in three amazing ways:
- HSA contributions (up to the IRS limits) are 100% deductible from your federal gross income, which means your taxable income will be lower. Almost all states consider HSAs tax-deductible, except California and New Jersey
- You can invest HSA money so it grows over time, and the interest will not be subject to future income tax if used for qualified medical expenses
- As long as your HSA withdrawal is used for a qualified medical expense, it's not subject to federal income tax
Eligibility
You're eligible for an HSA when you enroll in the BCBS HSA-Compatible Medical Plan. Just a heads-up—you won't qualify if you're on Medicare, covered by another health plan that isn't high-deductible, including one through your spouse or domestic partner, or you have a Health Care FSA.
Contributions
You choose how much you want to contribute to your HSA, up to the annual IRS limit. Be sure to consider Lithia & Driveway’s contribution when planning your total. And if your needs change, no worries—you can update your HSA contribution at any time during the year.
Contribution Limit
Catch-up contribution: If you are age 55—or will be by the end of 2025— you can contribute an additional $1,000 to your HSA!
Don’t Miss Out!
HSA Features
Here are key things you need to know about your HSA.
- You can use your HSA for a wide range of IRS-approved expenses like medical, dental, vision, prescriptions, and even some insurance premiums. Want the complete list? Check out IRS Publication 502
- Once your HSA balance hits $1,000, you can start investing it—just like your 401(k)—in mutual funds, stocks, and bonds. Even better, your contributions and any investment earnings grow tax-free
- Money for eligible health care expenses can be used now or saved for later—and it's yours to keep forever
Manage Your HSA
Take advantage of your HSA's convenient payment and reimbursement options.
- HSA debit card: Use your debit card to pay for supplies that are not covered by your medical plan
- Bill pay: Make online payments to health care providers on WEX
- Reimbursement: If you pay out of pocket for a qualified expense, you can get reimbursed from your HSA at any time, without penalty
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