Health Savings Account (HSA)
Administered by Fidelity
If you enroll in an HDHP (High Deductible Health Plan) with a Health Savings Account (HSA), you receive significant tax and savings advantages over traditional health care plan options, regardless of whether you're a low, medium, or high user of health care services. Watch this video to find out more!
HSA Qualifications
- You have no other non-HDHP coverage, including TRICARE.
- You or your covered spouse do not participate in a Health Care FSA.
- You are not enrolled in any part of Medicare.
- You are not claimed as a dependent on someone else’s tax return.
- Before age 65, you must use the money on qualifying medical expenses, or you’ll pay taxes and a penalty.
- After age 65, you would still have to pay taxes on non-qualified expenses, but you would not be subject to the penalty.
- Any eligible expenses incurred before your HSA account is opened are not eligible for reimbursement through this account.
Annual Employee & Employer Contribution
|
Medical Plan |
|
Coverage Tiers |
|
CEI Contributions |
|
Maximum Employee Contributions |
|
Total* |
|
HDHP $3,000 - $5,000 |
|
Employee Only |
|
$1,000 |
|
$3,400 |
|
$4,400 |
|
Benefits effective |
|
Employee + Spouse Employee + Child(ren) Employee + Family |
|
$2,000 |
|
$6,750 |
|
$8,750 |
|
|
|
|
|
|
|
|
|
|
|
HDHP $3,000 - $5,000 |
|
Employee Only |
|
$500 |
|
$3,900 |
|
$4,400 |
|
Benefits effective July 1 – December 31 |
|
Employee + Spouse Employee + Child(ren) Employee + Family |
|
$1,000 |
|
$7,750 |
|
$8,750 |
If you do not open your HSA, you will not be able to receive the employer contribution.
*This IRS limit is a combination of employer and employee contributions, and if you are 55 or older, you can contribute an additional $1,000.
What Type of Expenses Does an HSA Cover?
Distributions from an HSA that are used to pay for qualified medical expenses for you, your spouse, and dependents are tax free provided they meet the IRS definition of a qualified medical expense. The good news is that a lot of expenses qualify for payment or reimbursement, such as:
Additional Notes:
Distributions from an HSA that are used to pay for qualified medical expenses for you, your spouse, and dependents are tax free provided they meet the IRS definition of a qualified medical expense. The good news is that a lot of expenses qualify for payment or reimbursement, such as:
- Health plan deductibles and coinsurance
- Most medical care and services
- Dental and vision care
- Prescription drugs and insulin
- Medicare premiums (if age 65 or older)
Additional Notes:
- HSA contributions only valid if HDHP elected.
- FSA and HSA cannot both be used by the same individual
- Keep receipts and documentation for all HSA claims
- Review contribution limits annually due to IRS adjustments
For more information about HSAs and qualified medical expenses, refer to IRS Publications 969 and 502 at www.IRS.gov or consult a tax professional.
Prior to opening your HSA, you must be enrolled in an HDHP and have elected the HSA option during enrollment. You’ll get information on investment choices, payment options, and ongoing support to help you build and manage your savings.
You will receive an email from Fidelity providing you instructions for completing your HSA online setup at Fidelity NetBenefits® at https://nb.fidelity.com and click ‘Open’ next to Health Savings Account.