Available in Minnesota on July 1, the Empower Health Savings Account allows employers and employees to contribute pre-tax dollars into the accounts ( up to $2,600 for an individual and $5,150 for a family in 2004) and the money can be used to pay for any qualified medical expense, including over-the-counter medicines. Interest on HSAs is tax-free and unused funds roll over from year to year.
Participants in the Empower HSA can choose between six Wells Fargo mutualfunds for their pre-tax dollars and sincethe HSA is owned by the employee it moves with that individual should he or she change jobs or retire.
“Our product has been designed to meet the demands of a movement towards consumer driven health care, ” said John Reynolds, senior vice president of Wells Fargo Institutional Trust Services.“The newHSA product has been patterned after our familiar 401(k) product coupledwith a Wells Fargo Health Savings Account debit card for financialtransactions related to health care expenses. Making it easy to understandand use.”