March 2011

Quick Links:   Account Login  •  Tax Information  •  Contribution Form
In this issue:

  Tips for taxes

Putting money into your health savings account (HSA) helps you save on taxes. The money you contribute to your HSA reduces your taxable income, giving you a break on your personal income tax return.

With only a few more weeks to save on your 2010 taxes, here are some HSA contribution and tax filing tips that can save you time and money:

Hit the limit on your 2010 HSA contributions: You only have until April 18, 2011, to get your 2010 tax savings. For tax year 2010, you can contribute up to $3,050 with individual coverage and $6,150 with family coverage.

To make a 2010 contribution, fill out a paper HSA contribution/deposit form and mail it with a personal check to the address on the form. You cannot use an online funds transfer to make a prior year contribution.

Find general answers to your HSA tax questions: Visit Filing Taxes When You Have an HSA, a quick, interactive self-guided tour that answers such questions as:

  • How are employer contributions treated?
  • What forms do I need to file with my taxes?

If you have questions about your personal tax situation or want a more detailed explanation, contact a qualified tax professional.
Check out the tools and resources available at OptumHealthBank.com Customer Care Professionals are available Monday through Friday,
8 a.m. to 7 p.m. Eastern time at
(866) 234-8913.
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Log in to your account to make a contribution to your HSA.

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  Take charge of your health care spending

This month’s focus: Save on prescription medications. Here’s how:

  • Use pharmacies in your network. Your health plan may require you to purchase your prescriptions at a pharmacy in its network to receive discounted rates on your prescription medications.
  • Compare prices. Call around to network pharmacies in your area to see who offers the best price.
  • Sign up for mail-order prescriptions. If you don’t need your prescription immediately or if you are on a maintenance medication, mail order is frequently a less expensive way to buy prescription drugs.
  • Consider generic alternatives. When your doctor prescribes a brand-name drug, ask if there is a generic equivalent that would be equally effective. Tell your provider that you’ll be paying for the prescription out of your own pocket.
  • Consider a 90-day vs. a 30-day supply. Most insurance companies offer a 90-day supply, which you may receive at a discounted price.

  55 or older? Take advantage of catch-up contributions

If you’re 55 or older and not enrolled in Medicare, you’re eligible to make a catch-up contribution of $1,000 to your HSA account each year. Your catch-up contribution is in addition to the IRS allowable contribution limits of $3,050 for individuals and $6,150 for family coverage. Spouses who are 55 or older and enrolled in an HSA-eligible plan are also entitled to make catch-up contributions. However, they must make their catch-up contributions into their own HSAs.

Remember—your HSA funds stay with you even after you retire and/or enroll in Medicare, so it’s a smart way to start saving for the health care costs you’ll incur during your retirement years. Distributions for qualified medical expenses are tax-free.

For insight into how much you’ll need in retirement for health care, check out our Future Health Expense Calculator. It can help you estimate your retirement health care expenses.

Read Tim and Shirley’s Story for more information on how catch-up contributions work for people age 55 and older.
OptumHealthBank.com ©2011 OptumHealth Bank. All rights reserved.

Health Savings Accounts (HSAs) are individual accounts offered by OptumHealth BankSM, Member FDIC, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

Health Savings News is published bimonthly by OptumHealth Bank to inform HSA customers about the features and benefits of their accounts.

The email address from which this communication was sent is not monitored for responses. If you require assistance, please contact our customer service center toll free at (866) 234-8913. Customer Care Professionals are available to assist you Monday through Friday, 8 a.m. to 7 p.m. Eastern time.

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