What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is an account that you can defer pre-tax (via payroll deduction) or post-tax dollars into to save for future eligible medical, dental and vision expenses.  You control the money in your HSA and it can be used it to pay for eligible expenses for you or qualifying dependents.  The money you do not spend carries forward to future years.  You can even use the money penalty-free after age 65 for any purpose you want.  HSAs are offered in conjunction with a qualified high deductible health plan only.

The money in your HSA belongs to you—this includes any employer contribution. You decide how you want to pay for your health care expenses.  Important Note: HSA monies spent on dental and vision expenses, do not count towards your medical deductible and out-of-pocket amounts.

The “seed” contribution is money put into your account by the employer and is yours to use for eligible expenses.

Who is eligible for an HSA?

· If you are enrolled in the Q-HDHP plan

· If you are not covered by any other health plan including Medicare, TRICARE or TRICARE for Life

· If you have not received VA benefits within the past 3 months

· If you are not claimed as a dependent on someone else’s tax return

· If you are not covered by a Health Care Flexible Spending Account (FSA)

What are the benefits of an HSA?

· Account ownership—You own your account.  You can use it, invest it, save it and move it as you see fit.

· Portability—Accounts are completely portable, meaning you can keep your HSA even if you:

* Change jobs or retire

* Change medical coverage

* Become unemployed

* Move to another state

* Change your marital status

· Money can be used to pay for out of pocket IRS-qualified medical expenses.  For a list of qualified expenses, please refer to Section 213(d) of the Internal Revenue code or visit HealthEquity.com.

There are no “use it or lose it” rules for HSAs — the account balance rolls over each year.

How do I use my HSA?

Use your debit card, checkbook, auto pay, or online bill pay for any out of pocket health care expenses.

2023  Contribution Limits for Employees

· Individual  –  $3,850 (includes employee and employer)

· Family –  $7,750 (includes employee and employer)

Individuals age 55 and older can contribute an additional $1,000 per year “catch-up” contribution.