HSA
KAI 2022 ENROLLMENT • PLANNING FOR YOUR BENEFITS
What is a Health Savings Account (HSA)? A health savings account can only be used with a High Deductible Healthcare Plan. Money saved in this account can be used to pay for qualified medical, dental and vision expenses not typically covered by the plan like deductibles, copays, coinsurance and more. HSAs have triple tax protection. The money goes into the account tax free. It can be invested and grow tax free. And, when you use it for your healthcare expenses, it comes out tax free. There is no use it or lose it provision either. Money in the account can be rolled over from year to year if it is not used. You also have access to the funds at anytime, even if you leave Kao or retire, as long as it is for qualified healthcare expenses… even to pay healthcare premiums such as Medicare. The account is totally portable.
Contributions In 2022 you can contribute pre-tax up to $3,650 for single (employee only) coverage and $7,300 for employee + 1 or family coverage, for family plans. If you are older than age 55, you may also invest an additional $1,000 as a catch up contribution. This limit includes both your contribution and the KAI matching contributions. Your contributions may be made through payroll deduction or you can also contribute a lump sum taxdeductible deposit on your own. The amount you contribute can change throughout the year so you either increase or decrease that amount. KAI will make a one-time contribution of $500 for employees who enroll in the HDHP in 2022. In addition, KAI makes a $1 for $1 match on payroll contributions to your account up to $1,000 each year for a annual company contribution of up to $1,500. Remember, both employee and employer contributions count toward the annual contribution limit.
Rules About HSAs You cannot be covered under another group health plan or have other first coverage unless it is also a High Deductible Healthcare Plan. If you are covered under Medicare, you can enroll in the HDHP but you and Kao cannot contribute funds to an HSA. You may not contribute to both the HSA and a healthcare Flexible Spending Account (FSA). When enrolled in the HDHP, you may contribute to the HSA which provides taxfree savings. In addition, you may still have a dependent care flexible spending account.
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