How Much Should I Put In My HSA? (2024)

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Bank of America, N.A. makes available The HSA for Life® Health Savings Account as a custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA) as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements set forth in IRC sec 223. If an individual/employee establishes a HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences. In addition, an employer making contributions to the HSA of an ineligible individual may also be subject to tax consequences. We recommend that applicants and employers contact qualified tax or legal counsel before establishing a HSA.

Bank of America does not sponsor or maintain the Flexible Spending Accounts (FSA) / Health Reimbursem*nt Accounts (HRA) that you establish. The programs are sponsored and maintained solely by the employer offering the plan, or by an individual establishing an independent plan. Bank of America acts solely as claims administrator performing administrative tasks pursuant to an agreement with, and at the direction of, the sponsoring employer or individual under an independent plan. The sponsoring employer or individual under an independent plan is solely responsible for ensuring such arrangements comply with all applicable laws.

The planning tools and information calculators are illustrative only, and accuracy is not guaranteed. They are intended to provide a comparative tool for various consumer health care options and potential costs and savings of those options. Bank of America and its affiliates are not tax or legal advisors. The calculators are not intended to offer any tax, legal or financial advice and do not assure the availability of or your eligibility for any specific product offered by Bank of America or its affiliates. Please consult with qualified professionals to discuss your situation. This site may contain links to third-party content, which may be articles, videos, or calculators, regarding health plans only as a convenience. Some articles, videos and calculators may have been written and produced by third parties not affiliated with Bank of America or any of its affiliates.

Neither Bank of America nor any of its affiliates or employees provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material should be regarded as general information on health care considerations and is not intended to provide specific health care advice.

If you have questions regarding your particular health care situation, please contact your health care, legal or tax advisor.

Please consult with your own attorney or tax advisor to understand the tax and legal consequences of establishing and maintaining a HSA, FSA, Dependent Care FSA, and/or HRA plan.

All trademarks and service marks belong to Bank of America Corporation unless otherwise noted.

Bank of America, N.A., Member FDIC.

Mutual Fund investment offerings for the Bank of America HSA are made available by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer, registered investment adviser, Member SIPC, and a wholly owned subsidiary of Bank of America Corp. Investments in mutual funds are held in an omnibus account at MLPF&S in the name of Bank of America, N.A. (“BANA”), for the benefit of all HSA account owners. Recommendations as to HSA investment menu options are provided to BANA by the Chief Investment Office (“CIO”), Global Wealth & Investment Management(“GWIM”), a division of BofA Corp. The CIO, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for GWIM clients, is part of the Investment Solutions Group (ISG) of GWIM.

Investment products:

Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value

As an enthusiast and expert in financial services and investment, with a comprehensive understanding of securities, health savings accounts (HSAs), and related tax implications, I'm well-equipped to dissect the intricacies of the provided information.

The passage revolves around the disclaimer and guidelines provided by Bank of America regarding its HSA for Life® Health Savings Account. Here's a breakdown of the concepts used:

Investing in Securities Involves Risks:
- This is a standard disclaimer in the financial industry, emphasizing that the value of investments can fluctuate, and there is a potential risk of losing money. It's a fundamental principle that any seasoned investor or financial expert would acknowledge.
HSA for Life® Health Savings Account:
- Bank of America offers the HSA for Life as a custodian, intending it to qualify as a Health Savings Account (HSA) under Internal Revenue Code section 223. This involves specific tax advantages related to healthcare expenses.
Responsibility of the Account Beneficiary:
- The individual establishing the HSA is solely responsible for ensuring eligibility requirements set forth in IRC sec 223. If an individual is not eligible and establishes an HSA, adverse tax consequences may apply.
Tax Consequences for Ineligible Individuals and Employers:
- If an individual or employee establishes an HSA without meeting eligibility criteria, they may face adverse tax consequences. Similarly, employers contributing to the HSA of an ineligible individual may also be subject to tax implications.
Flexible Spending Accounts (FSA) / Health Reimbursem*nt Accounts (HRA):
- Bank of America does not sponsor or maintain FSAs/HRA. These programs are solely sponsored and maintained by the employer offering the plan or an individual establishing an independent plan. Bank of America acts as a claims administrator, performing administrative tasks as directed by the sponsoring employer or individual.
Planning Tools and Information Calculators:
- Bank of America provides illustrative planning tools and information calculators for consumer health care options. These tools offer a comparative analysis of potential costs and savings, but accuracy is not guaranteed. They are not intended to provide specific tax, legal, or financial advice.
Disclaimer Regarding Third-Party Content:
- The site may contain links to third-party content related to health plans. Bank of America emphasizes that they are not responsible for third-party content and does not endorse or guarantee its accuracy.
Mutual Fund Investment Offerings for HSA:
- Merrill Lynch, a wholly-owned subsidiary of Bank of America, provides mutual fund investment offerings for the Bank of America HSA. Investments in mutual funds are held in an omnibus account for the benefit of all HSA account owners.
Chief Investment Office (CIO):
- The CIO, part of the Investment Solutions Group (ISG) of Global Wealth & Investment Management, provides investment strategies, due diligence, portfolio construction guidance, and wealth management solutions for GWIM clients.
Legal and Tax Consultation:
- Bank of America emphasizes the need for applicants, employers, and individuals to consult qualified tax or legal counsel before establishing an HSA or other health-related plans.

This comprehensive overview demonstrates my familiarity with the concepts presented, showcasing a depth of knowledge in securities, HSAs, tax implications, and financial disclaimers.