What is a HSA?
A Health Savings Accounts (HSA) allows you to save, invest and budget for eligible healthcare expenses on a pre-tax basis. There are several advantages to establishing a HSA account:
- Reduces your taxable income. Your contributions to your HSA are tax-free, so you keep more of your paycheck
- The money always belongs to you. The monies in your account regardless if contributed by you or your employer will always be yours to use – even if you retire or leave Wright State. In addition, you can pass your investment onto your heirs if never needed.
- Your account earns interest tax-free. Your account earns interest, and the interest is never taxed, as long as you do not exceed the annual contribution limits.
- You control the money. Upon reaching a specified account level, you decide how to invest your monies including dollars received from Wright State.
- You can save the money for future needs. Even if you do not have healthcare needs today, your HSA funds will be there in the future – even after retirement.
- It’s easy to use the funds. You will have a debit card and can purchase checks.
Due to the favorable tax treatment for HSA, the IRS has strict guidelines as to who can qualify for contributions to an HSA account. For new enrollees, you will need to certify that the following situations do not exist. Enrollment and management of your HSA is your responsibility. If your situation changes at any time, for any reason, you are personally liability to ensure you take the necessary steps to ensure compliance with IRS rules. The following is required to be able to contribute to an HSA:
- You must be enrolled in a High Deductible Health Plan (HDHP)
- You cannot be covered by another non-high deductible medical plan
- Cannot be covered by a Healthcare Flexible Spending Account
- Cannot be enrolled for Medicare benefits - neither you nor Wright State can contribute money to an HSA once you’re enrolled in Medicare – but you can continue to spend the money even if no longer funding the account
- Cannot be claimed as a dependent on another person's tax return
- Cannot be enrolled in any other non-qualified medical plan.
- Cannot be covered by TRICARE or be eligible to receive VA medical benefits
How It Works
You can use your HSA funds to pay for out-of-pocket medical expenses such as doctor office visits, prescriptions – the costs that apply to your medical deductibles. You can also use these dollars for other eligible expenses such as dental and vision -- costs which do not apply to your medical deductibles. Also, looking towards the future, your HSA account can be used to fund long-term care insurance, COBRA premiums, and Medicare insurance premiums. For a listing of eligible expenses, please visit https://www.mywealthcareonline.com/fifththirdhsa/Resources/HSAResources/EligibleandIneligibleHSAExpenses.aspx
Health Savings Account IRS Annual Limits
The IRS annual contribution limits for 2014 have increased slightly. The limit is a total of all contributions to your account and cannot exceed:
- $3,300 for Individual
- $6,550 for Family
- $1,000 additional for HSA catch-up contributions (age 55 or older)
Calculating your Maximum Contributions
Contributions to your HSA Account can come from three sources:
- Employer contributions
Wright State’s contribution is listed on your Healthcare Premium listing and occurs quarterly: January 1, April 1, July 1 and October 1.
- Employee contributions
You can make pre-tax payroll deductions at any time during 2014. If desired, you can start your initial deductions in January by electing a HSA contribution via the Online Enrollment, for any dollar amount and any number of pay periods. Your elections can be stopped or started at any time during the year. They do not however, roll over into the next calendar year; so remember, if you desire contributions in January, you must elect via the Online Enrollment. Yourself or another person can also make an “after-tax” contribution to your HSA.
- Anthem Healthy Rewards
As a participant in the HDHP, you are eligible for additional Wright State contributions to your HSA based on enrollment and completion of several Health programs offered by Anthem. For example, completing the Health Assessment on www.anthem.com will earn you a $50 contribution each year. For additional information on these programs, please refer to the Anthem Healthy Rewards flyer included in this section.
For New Enrollees
- First, you must elect the HDHP as your medical plan choice.
- Second, you must print, sign and mail to Human Resources the HSA Eligibility Certification included in this section.
- Lastly, you must open your account at Fifth Third Bank before funds can be deposited (including any WSU contributions) or withdrawn to pay for qualified medical expenses.
- To open your account electronically, visit www.53hsa.com and use the enrollment code FTB-8649. See instructions included in this section.
- Must be completed by December 13, to ensure a timely deposit of Wright State’s contribution on January 1 and any further January contributions you elected during Online Enrollment.