Important Information for New HSA Participants
All financial institutions are required by federal law to obtain, verify and record information that identifies each person who opens a Health Savings Account. This information will be verified when you go online to create/activate your account with the benefit administrator.
When you go online to create your account, the benefit administrator may ask for your name, street address, date of birth, social security number, and other information that will allow them to identify you. In some cases, (e.g. if you moved recently and your new address is not on file with the appropriate government agency), you may be asked to provide proof of your identity by providing a copy of your utility bill verifying your address or a copy of your Social Security card if the number does not match the verifying source’s records.
You will not be able to access your Health Savings Account until your identity is verified by the benefit administrator and you have created/activated your online account.
A Health Savings Account (HSA) is a funding program that allows you to put money aside for eligible medical care expenses tax-free. Unlike the flexible spending account, a HSA allows you to “roll-over” unused dollars into the next year. There is no “use it or lose it” provision. Furthermore, your funds can be invested and grow much like the funds in a retirement account. Earnings are tax-free.
Who is eligible?
- Must be enrolled in the HDHP medical plan
- Must not be enrolled in Medicare
- Must not be covered by other medical insurance
- Must not have received VA medical benefits at any time in the past three (3) months
- Spouse is not contributing to/participating in a general-purpose FSA through his/her employer
Eligible employees may contribute up to the limits established by the federal government. If contributions are made through payroll deductions, they will be made pre-tax. Participants will receive IRS forms 5498 and 1099 to aid in tax preparation. The participant is responsible for documenting that all withdrawals have been used for qualified medical expenses and they will be liable for state and federal taxes if the expenses were not qualified medical expenses.
The money in your account is yours as soon as it is deposited into your account. You can change health care coverage or change jobs in the future and still keep the money in your account.
HSA Contribution Limits
|HDHP Coverage||Contribution Limit 2016||Contribution Limit 2017||Contribution Limit|
2017 if 55+
|Employee + (1)||$6,750||$6,750||$7,750|
|Employee + (2+)||$6,750||$6,750||$7,750|
Health Savings Account (HSA) Funding
|.75 FTE and above||Level 1||Level 2||Level 3|
|Employee + (1)||$200.00||$0.00||$243.50||$43.50||$287.00||$87.00|
|Employee + (2+)||$200.00||$0.00||$243.50||$43.50||$287.00||$87.00|
|.50-.74 FTE||Level 1||Level 2||Level 3|
|Employee + (1)||$160.00||$0.00||$181.75||$21.75||$203.50||$43.50|
|Employee + (2+)||$160.00||$0.00||$181.75||$21.75||$203.50||$43.50|