H E A LT H S AV I N G S AC C O U N T ( H S A ) Available only if you enrolled in the $2,800 HDHP
What is a Health Savings Account?
What Type of Expenses Can Be Paid From an HSA?
A Health Savings Account (HSA) is an account permitted under the federal tax law that allows you to save money for healthcare expenses on a tax-favored basis. It is an individual account that belongs to you and is not part of (Company Name)’s medical plan. The account is portable, which means it is not tied to your employment at (Company Name). Your HSA stays with you if you retire or leave the company. Because the HSA has special tax status under the law, it is governed by numerous mandatory tax rules and regulations.
You can receive tax-free distributions from your HSA to pay for or to be reimbursed for qualified medical expenses that are incurred after you establish your HSA. These include: ▪ ▪
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Who is Eligible for an HSA?
Any medical expenses that apply toward your deductible, Any healthcare expenses that are qualified expenses for tax purposes under Section 213 of the Internal Revenue Code. Some of these expenses are described in IRS Publication 502, Once your reach age 65, Medicare premiums or other health insurance, other than a Medicare supplemental policy.
Generally, to be eligible to set up and contribute to an HSA, you: ▪ ▪ ▪ ▪
You may find information about these rules on the IRS website (www.irs.gov), including IRS Publication 969 and 502. You may also want to consult a tax-advisor.
How Much Can I Contribute to An HSA? As noted by federal law, the annual contribution limits are: ▪ ▪
How Do I Enroll in an HSA?
Must be covered by a Consumer Directed Health Plan (CDHP) – the $2,800 HDHP plan (page 7 of this guide) Cannot be claimed as a dependent on anyone else’s tax return Are not enrolled in Medicare (due to age or disability) or Tricare Cannot be enrolled in a general purpose FSA, nor can your spouse
You can go to any banking institution of your choice and apply for an HSA account. This account works similarly to how a bank would manage your personal savings or checking account. When you open your HSA, you receive a debit card and/or checkbook to be used on many out-of-pocket qualified expenses like doctor visits, vision and dental care, and prescriptions.
HSA Bank – how to open your Health Savings Account ▪ ▪ ▪ ▪ ▪
Log on to www.hsabank.com and click “OPEN AN HSA” Follow the instructions to set up your individual HSA. Let HR know how much to fund your account. Funds in your account roll over every year The money is yours, so the account stays with you if you leave your employer
The amount is $3,650 for individual coverage and $7,300 for family coverage. Individuals age 55 or older may be eligible to make a catch-up contribution of $1,000.
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