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Health Savings Account
WHAT IS A HEALTH SAVINGS ACCOUNT?
A Health Savings Account (HSA) can help you manage your expenses today and in the future. It’s yours to: • Own. The HSA is always yours, even if you change jobs, re-enroll in one of the traditional plans, become unemployed or retire. • Grow. Your unused balance rolls over from year to year. No “use it or lose it.” • Save. HSAs provide tax-free contributions, tax-free withdrawals for qualified health expenses and tax-free earnings from investment options. • Choose. Use for current expenses, save for the future (money you save can be used for health expenses after you retire) or explore investment options.
HSA: ACCOUNT ELIGIBILITY
You must be covered by one of the Qualified High Deductible Health Plans (HDHP Basic or HDHP Enhanced). You cannot be claimed as a dependent on someone else’s tax return. It is the account holder’s responsibility to maintain compliance under these regulations. You cannot have any “other coverage” such as: • A plan that is not an HSA-qualified HDHP. • Spouse’s plan that is not a QHDHP (Traditional HMO or PPO). • Medicare or Medicaid. • TRICARE coverage (military health care). • Health Care Flexible Spending Account. • Not including a Dependent Care Flexible Spending Account or a Limited Purpose Flexible Spending Account. • Health Reimbursement Arrangement (HRA).
QUALIFIED EXPENSES
IRS Publication 502 provides a complete list of eligible expenses and can be found at www.irs.gov.
Review IRS Publication 502 for a complete list of eligible expenses. Pay for expenses for yourself and your spouse or tax dependents (even if they are not covered by your health plan).
INVEST IN YOUR HSA
HealthEquity offers a wide range of investment and savings options to suit your individual needs and financial goals including Cash Account, Yield Plus and Varying Risk mutual funds.
TAX SAVING OPTION
The 2023 IRS annual maximum allowed contributions for these accounts are:
$3,850
EMPLOYEE-ONLY
$7,750
FAMILY
HSA Funding and Limits: Employees are responsible for tracking annual limits, including any employer contributions you receive.
At age 55, an additional $1,000 contribution is allowed annually.
IMPORTANT
Your Responsibilities as the HSA Account holder
Keep your itemized receipts. • Monitored by you and the IRS • If you are under the age of 65, non-qualified expenses subject to: 20% penalty and normal income tax • After 65, non-qualified expenses subject to normal income tax
2023 EMPLOYER CONTRIBUTION
Any employee enrolled in either the HDHP Enhanced or HDHP Basic plan in 2023 with a HealthEquity HSA will receive an automatic one-time HSA contribution from DFA.
If you elect EmployeeOnly coverage, you will receive $750. If you elect Family coverage, you will receive $1,500.
This contribution is in addition to the wellness incentive you may be eligible to receive. Both employer
