Whether your goal is to save and invest your money for the future or take advantage of tax savings to pay for qualified medical expenses now, Wells Fargo makes it easy to manage your Health Savings Account (HSA).
Benefits of a Wells Fargo HSA include:
- Educational resources to help you get the most out of your account
- Convenient, national account access through online banking, retail stores, and ATMs
- An integrated investment account with a range of mutual funds to meet your needs — all with no investment transaction fees or loads
- Dedicated HSA specialists and investment professionals to help you achieve your healthcare savings goals
Making regular contributions to your HSA is a great way to take advantage of the tax and savings benefits of the account. Set up recurring contributions — either pre-tax through your employer or tax-deductible through online banking — and watch your account balance grow. Remember the HSA and funds in it are yours, and carry forward every year if you don’t spend them, even if your account is through your employer and you leave the company. To save the most in taxes, make contributions up to the annual maximum.
Here are three typical strategies for effectively using your HSA:
- Calculate your annual spending on qualified medical expenses. Set aside those funds in your HSA to take advantage of the tax savings.
- Start saving additional funds in your HSA — more than your expected annual spending amount — to prepare a safety net for the future.
- Complement your retirement plan with your HSA. See the Investing tab for more details.
A little bit of savings for unexpected expenses can add up
Over time, you can likely save enough in your HSA to cover your portion of unexpected expenses. If you don’t need the funds, you can continue to save them, year after year, and even into retirement.
|Monthly HSA contribution
||Savings over 5 years
||Savings over 10 years
||Savings over 15 years
Extend your buying power using your HSA
With the money you’ll save on taxes, you’ll have more to spend on qualified medical expenses. The example below shows someone in the 25% income tax bracket who made a $500 HSA contribution. He or she would get an extra $125 to spend on qualified medical expenses compared to what he or she would have had without funding an HSA.
|25% income tax
|Funds left to spend on qualified medical expenses
Convenient ways to contribute
- Automatic payroll deduction. If your employer offers automatic payroll deductions, it’s the most convenient way to fund your account. And you can enjoy the tax benefits immediately because the contributions will likely be pre-tax income.
- Direct to your account. Make recurring or one-time contributions through Wells Fargo Online. Make one-time contributions at any Wells Fargo store or with the deposit slip in your monthly HSA statement.
- IRA to HSA rollover. The IRS allows for one Individual Retirement Account (IRA) to HSA transfer in a lifetime. This can be a great way to initially fund or replenish your HSA without using current income. You can transfer up to the maximum annual HSA contribution limit from your IRA. Complete, print, and sign the Rollover/Transfer Request Form (PDF*).
Remember: You can make changes to the amount you’re contributing at any time during the year, and you don’t need a qualifying event to do so.
Your HSA complements your health, vision, and dental plans, allowing you to use pre-tax dollars to pay for your share of qualified medical expenses. When you have healthcare expenses, the cash balance in your account is available to pay for your share.
Download our Going to the Doctor or Pharmacy Guide (PDF*) to find out how easy it is to use an HSA to pay for doctor or pharmacy expenses. To learn more about how your HSA works with your HSA-qualified health plan, view this short video.
There are several ways to access your HSA funds. You can:
- Use your Wells Fargo Visa® HSA debit card to make purchases at any merchant that accepts Visa debit cards. Your HSA debit card is the easiest way to pay.
- Visit approximately 6,200 retail banking stores to make deposits, withdrawals, and transfers.
- Make free withdrawals at more than 12,500 Wells Fargo ATMs nationwide.
- Make withdrawals at any ATM displaying the Visa or Plus® logos worldwide.
- Use Bill Pay to pay your providers directly online.
- Pay for qualified medical expenses using cash or your personal credit or debit card. Then, reimburse yourself by making a withdrawal from your HSA at an ATM or at a Wells Fargo store using your HSA debit card. You also can send in a distribution request to pay yourself back by check or electronic deposit.
- Use online distributions through Wells Fargo Online® to make one-time transfers into a Wells Fargo bank account that’s in your name.
- Provide the doctor or merchant with your HSA debit card number to pay for a product or service.
- Use HSA checks to pay merchants for qualified medical expenses. (To order checks for your HSA, please call customer service at 1-866-884-7374, Monday – Friday, 7 am – 8 pm Central Time. Note that an additional fee applies.)
Learn more about your Wells Fargo Visa® HSA debit card (PDF*).
Whether you want to make smart tax decisions or you’ve received your HSA tax forms and are wondering what to do with them, it’s important to understand the tax benefits and rules associated with your HSA. Get answers to frequently asked questions about HSAs and your federal taxes and watch the Taxes and HSA video to learn more.
The chart below provides an overview of the four primary federal tax forms related to your HSA.
- Wells Fargo mails IRS Form 1099-SA in January and IRS Form 5498-SA in May. Both tax forms are mailed only if there was account activity (contributions or distributions) the previous tax year.
- You must file IRS Form 8889 with your tax return and your employer supplies the W-2 (if your employer makes HSA contributions on behalf of employees).
||Where does the form originate?
||End of January
||Reflects all distributions from your HSA for the previous tax year.
Wells Fargo sends this form to you and the IRS (if you’ve taken distributions).
||End of May
||Shows your total prior-year contributions, which can be made up until the federal tax-filing deadline (typically April 15).
Wells Fargo sends this form to you and the IRS (if you’ve made contributions).
||Federal tax filing deadline (typically April 15)
||Use the worksheet to calculate your HSA deduction. You may also report distributions from the HSA in the previous tax year.
Your tax advisor may send this form to you, or you can download it from the IRS website.
||Box 12W shows total contributions made to your HSA through your employer — both your own pre-tax contributions and any your employer makes on your behalf. You’ll need this amount to complete Form 8889.
||Your employer, either through the mail or online.
All information provided here is intended as a convenient source of tax information. This information is general in nature, is not complete, and may not apply to your specific situation. You should consult your own tax advisor regarding your tax needs. Wells Fargo makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use.
Take advantage of an HSA investment account
Your Wells Fargo HSA can be a powerful tool for growing your HSA funds for future healthcare expenses. With an integrated investment account, your HSA offers access to a broad range of mutual funds to meet a variety of investing styles. Learn more about HSA Mutual Funds.
Through Wells Fargo Advantage Funds® you gain access to a name you know and trust, as well as investment professionals who are ready to help guide you as you determine which mutual funds will help meet your investing goals.
Build an HSA into your retirement strategy
Did you know the average couple retiring today will need up to $250,000 or more for medical costs during their retirement?
Learn more about how to use your HSA to complement your retirement strategy:
- Investing for Retirement with Your HSA video
- Retirement and Your HSA (PDF*)
- Triple-Tax Benefits of HSAs (PDF*)
View our investing frequently asked questions to learn more about managing your HSA investments.
Start saving now for your future.
After you’ve opened your Wells Fargo HSA, it’s easy to activate an investment account.
2. From there:
- Select the HSA Investment tab at the top of the page.
- Select the Activate HSA Investment Account button.
3. Once you activate your investment account, you can set up the mutual funds in which you want to invest.
Once an investment account is opened and the automatic transfer feature is activated, balances in your FDIC-insured deposit account that exceed the $2,000 minimum threshold will be automatically transferred to your preset investment elections.,
Benefit from our investment expertise
New to investing? These materials can help you plan, research, manage, and optimize your investment opportunities.
- Learn more about mutual funds
- Research the HSA Mutual Funds
- Learn more about choosing a mutual fund that meets your needs
- Learn more about choosing investments
Get regular market and investment insights from Wells Fargo Advantage Funds®:
- AdvantageVoice®. Read our latest economic news and daily market recaps, and share your thoughts and questions on the AdvantageVoice blog.
- On the Trading DeskSM. Listen to weekly investment news and personal finance podcasts from portfolio managers and industry experts.
Managing your HSA online
You can access your HSA through Wells Fargo Online®:
- View detailed account activity, including your account balance and Wells Fargo HSA debit card transactions
- Make a one-time or recurring contribution to your HSA
- Select automatic transfer to investments,
- View your available investment account balance — including detailed investment holdings, and current value by holding
- Order HSA debit cards for your spouse or dependents
- View online tax documents and monthly statements
- Use online distributions to make one-time transfers into your Wells Fargo bank account — a great way to reimburse yourself for out-of-pocket expenses
Follow these steps to sign on to Wells Fargo Online®.
|If you’re a new customer
If you’re a registered user
You can also access and manage your HSA:
- In person, at approximately 6,200 retail banking stores.
- At more than 12,500 Wells Fargo ATMs where you can make withdrawals and contributions.
- By phone at 1-866-884-7374.