The Personal Choice HDHP medical option comes with a Health Savings Account (HSA), a tax-advantaged “piggy bank” that lets you save for current and future healthcare expenses on a tax-free basis. This section reviews key facts about how the HSA works. You also can watch presentations on the Benefits Gateway or on the HealthEquity website (healthequity.com).
HSA CONTRIBUTIONS
Employer Contributions—To help you meet the deductible, your employer will contribute $750 (prorated if you participate for less than the full plan year). Your employer will contribute even if you don’t—and their contribution may be more than $750 if they share the cost of family medical coverage.
Your Contributions—You may add pre-tax contributions to your HSA through payroll deductions. The IRS sets a maximum contribution for each calendar year. For the 2018 calendar year, you and your employer can contribute up to $3,450 if you have individual HDHP coverage or $6,850 if you have family HDHP coverage. Note: Tax penalties apply if you contribute too much.
Eligibility for HSA Contributions—You and your employer can contribute to an HSA only if your only medical coverage is a high deductible health plan (HDHP), such as Personal Choice HDHP, you are NOT enrolled in any part of Medicaid, Medicare, or VA benefits, you are a U.S. citizen or resident alien at least age 18 with a valid U.S. address and Social Security number, and you are not claimed as a dependent on anyone else’s tax return.
Eligible Expenses— You may use your HSA for eligible health expenses not covered by another source. The IRS determines what expenses are eligible. For details, see IRS Publication 502 at irs.gov.
MANAGING YOUR HSA
The HSA is administered by HealthEquity. You manage your HSA through the website at healthequity.com. The website includes videos, calculators, FAQs, and narrated presentations about how HSAs work and how to use your account. For specific tax questions, speak with a tax advisor. The HSA is YOUR account. YOU are responsible for ensuring that you are eligible for HSA contributions, that contributions do not exceed the IRS maximum, and that you use the account only for qualified medical expenses. Be sure to keep your receipts.
| TOP 5 HSA ADVANTAGES |
| 1. Triple Tax Advantage— Contributions, earnings, and qualified distributions are tax free (state tax treatment varies) provided IRS regulations are followed. |
| 2. Free Money— Your employer will contribute (see Employer Contributions). You can add pre-tax contributions. |
| 3. Roll Over—Unused contributions roll over each year and grow with new contributions and earnings. |
| 4. It’s Yours—The HSA is your account—you take it with you wherever you go. |
| 5. Use It or Save It— You can use your HSA for eligible expenses today for you, your spouse, or your eligible dependents—or save it for future expenses. |
