Alice HSA can be used in two ways:
1. Spend-as-you-go: Just like commuting, when you have eligible healthcare expenses Alice runs this through payroll so you get your tax savings ASAP. Alice runs these expenses as a deduction and reimbursement through payroll. This way, you're receiving about 30% back onto your take-home pay. This 30% or so is what you'd normally pay in taxes, but get to keep by using Alice.
Spend-as-you-go is for anyone who spends money on healthcare expenses during the plan year and wants to get their tax savings on their paychecks.
2. Contribute from paychecks. You can choose to contribute some of your income to go into your HSA for future healthcare expenses. You can do this on just one paycheck or every paycheck. In payroll these deductions will not have reimbursements to match like the spend-as-you-go ones.
Contributing is for anyone who wants to plan for their long term savings goals.
Your long term HSA savings can also be used to save for retirement. If you spend your HSA funds on non-HSA eligible expenses after the age of 65, there will be no penalty and the amount spent will simply be taxed as income (at an assumed lower tax rate due to lower income during retirement).
At this time, you can use your contributed HSA funds by choosing the "From my balance" option when you confirm eligible purchases made on a personal card or the Alice Card.
When will Alice text me?
Alice will text you 3-4 days after your eligible healthcare purchase with a link to upload your receipt. If you don't hear from us after a few days, you can always report the purchase through your Alice dashboard to help our system find your transaction.
Does Alice keep track of how much I've spent toward my HSA?
Yes, Alice will always make sure you stay within your own IRS spending limits for the year.
Can I invest the funds that I put into my HSA?
The Alice HSA does not have investment options at this time, but we will let you know when that changes in the future!
What happens if I no longer work for the company that offered me Alice?
Your HSA is "portable." This means it stays with you even if you change employers or leave the work force. There is no use-it-or-lose it with HSA. You can use this money for your future healthcare expenses.