HEALTH SAVINGS ACCOUNT
WANT TO SAVE MONEY WHILE LOWERING YOUR TAXABLE INCOME?
A Health Saving Account (HSA) is a tax-advantaged personal savings account to pay for qualified healthcare-related expenses now and into retirement. The HSA is available only to employees who are enrolled in the qualified Blue Cross Blue Shield High Deductible Health Plan. HSA dollars can be used to pay out-of-pocket medical, dental, vision, and prescription drug expenses for deductibles, coinsurance, and co-pays subject to IRS guidelines.
The funds you contribute to the account are not subject to federal income tax and state income tax except in CA and NY. Unlike a flexible spending account (FSA), funds in an HSA roll over and accumulate year after year if not spent. Your HSA is owned by you and, as a result, is portable. In other words, ownership of your HSA balance is not affected by employment status. If you’re enrolled in the HDHP plan and wish to continue to participate in the HSA for the following year, you must re-enroll at every open enrollment period as your elections do not carry over year after year due to IRS regulations.
| START IT | BUILD IT | USE IT | GROW IT | KEEP IT |
|---|---|---|---|---|
| After you enroll in the HDHP/HSA Plan you will receive a welcome packet with your debit card from WEX Benefits. | Your contributions to your HSA are pre-tax through payroll deductions (limits apply). You can change the amount you contribute at any time but cannot exceed annual IRS limits. | You can use the money in your HSA to pay for covered health care for you and your qualified dependents (such as deductibles, copays and co-insurance). Withdrawals from your HSA for qualified medical expenses are tax-free! | Unused money in your account will roll over to the next year. Your account will earn interest and grow over time. Once your account reaches $2,000, you may invest your HSA account through an investment account. Contact WEX Benefits for instructions. | You always own the money in your HSA, including interest and other investment earnings. You can take the account with you if you are no longer employed at Monkey Sports |
WHO IS ELIGIBLE FOR HSA?
You are eligible for an HSA if you meet all of the following conditions: Cigna HDHP/HSA Plan is the only medical plan in which you are enrolled; you aren’t enrolled in Medicare, Medicaid, TRICARE, TRICARE for Life or a military benefit program; you aren’t a dependent on another person’s tax return or covered as a dependent under your spouse’s plan (e.g. PPO, POS, or HMO).
HOW TO ROLL OVER FUNDS?
Do you have more than one HSA account and you would like to roll into your new HSA debit card, no problem. Here’s what you need to do: Contact your current HSA custodian online or by phone to check your HSA Balance Choose how to have your HSA funds rolled over Deposit your funds into your new WEX account
Annual IRS Contributions
| 2024 Annual IRS Allowed Contribution | Employee Only | Employee + 1 or more enrolled |
|---|---|---|
| IRS Annual Max | $4,150 | $8,300 |
| Catch-up Contribution (55 or older) | $1,000 | $1,000 |