A Health Savings Account (HSA) allows you to save money in a tax-free savings account for qualified medical expenses. These HSA accounts are administered by HealthEquity and work along with the consumer-directed health plans (CDHPs). Funds in an HSA roll over from year to year.
When you choose to enroll in a Consumer Directed Health Plan (CDHP), you are automatically enrolled in a tax-free health savings account (HSA). There is no enrollment form to be completed to open this HSA.
The employer makes contributions to your HSA once a month at the end of each month. You will not see the employer contribution on your pay-stub. What you will see is the monthly employer contribution to your benefits package on the 2nd paycheck of each month, which currently equates to $939, and will increase to $976 July 1, 2020. This amount reflects the employer’s contribution to your medical, dental, basic life and basic LTD insurance premiums, as well as the employer contribution to your HSA. By the end of a calendar year a total of $700.08 per individual ($58.34 monthly), or $1400.04 per family ($116.67 monthly) will be deposited by the employer into your account. You can monitor contributions to your account by visiting the HealthEquity Member Portal.
Employees are also able to make contributions to their HSA accounts by contributing through payroll deduction* or by sending money directly to HealthEquity. In 2020, an employee can contribute a maximum of $3,550 to their account or could contribute a maximum amount of $7,100 if they enroll another family member on the plan. These limits will be increasing in 2021 to $3,600 and $7,200 respectively. These contribution maximums include employee, employer and spouse/partner contributions if the employee’s spouse/partner is also enrolled in a CDHP/HSA. These contribution maximums also include the Wellness Incentive deposit of $125, if eligible.
*Please see the “HSA Forms” link in the right hand column for the necessary form to set up payroll deduction to your HSA account.
Both myself and my spouse/registered domestic partner are enrolled in an HSA
If both you and your spouse/qualified tax-dependent registered domestic partner are enrolled in an HSA, you have each enrolled into separate accounts. While each member has a separate account, the amount each member can contribute depends on the type of coverage each person has.
A. If both you and your spouse/qualified tax-dependent registered domestic partner have individual CDHP coverage, each employee can contribute up to $3,550 each for 2020. Both accounts can be used by each spouse.
- Example – John uses all $3,550 of his accounts contributions, and still has additional eligible medical expenses. Jane has $1,000 of unused funds in her account and due to John being an eligible spouse, Jane can claim John’s remaining eligible expenses toward her remaining $1,000.
B. If both you and/or your spouse/qualified tax-dependent registered domestic partner have family CDHP coverage, the family can decide how they would like to split the $7,100 family maximum contribution for 2020. Both accounts can be used by each spouse.
- Example – John decides to contribute $5,000 to his HSA for 2020, which leaves Jane able to contribute up to $2,100 in 2020 to her HSA. John uses all $5,000 of his contributions, and still has additional eligible medical expenses. Jane still has $1,000 of unused funds in her account and due to John being an eligible spouse, Jane can claim John’s remaining eligible expenses toward her remaining $1,000.
Disclaimer: The information contained on this website is for informational purposes only and does not constitute legal advice, nor does it substitute for official plan documents. All information on this website is relayed to the best of the agency’s ability, but does not guarantee accuracy. Please seek HSA guidance from Health Equity or your tax advisor.
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