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Health Savings Account (HSA)

An HSA is an account that functions much like an IRA and a medical flexible spending account, where employees can invest money, reduce taxable income for the amount invested, and use the money without penalty for eligible medical expenses. The interest gained over the duration of the account is also tax free.

High Deductible Health Plan (HDHP) participants may participate in the HSA. HDHP participants may not participate in the medical flexible spending account (FSA).

2017 Federal HSA Contribution Limits

  • Single - $3,400
  • Family - $6,750
  • Catch up (age 55 and older) - additional $1,000

2018 Federal HSA Contribution Limits

  • Single - $3,450
  • Family - $6,900
  • Catch up (age 55 and older) - additional $1,000

UR Annual Contribution to HDHP Participants (a portion of the annual contribution goes into the account each pay period)

  • Employee only - $500
  • Employee plus dependants - $1,000

Investing in an HSA

Contributions to the HSA can be made via payroll deduction and/or directly to the account. Participants are immediately vested in their HSA, and there is no "use it or lose it" stipulation. It's the participant's account; it's portable and can be built on over the years.

Investment Options:

  • Vanguard No-load Mutual Funds - no minimums
  • Debit card from FPS Trust

Same Sex Domestic Partners enrolled in the High Deductible Health Plan (HDHP)

Employees who cover a same sex domestic partner on the high deductible health plan (HDHP) need to be aware of a few stipulations regarding the health savings account (HSA).

Qualified medical expenses are those incurred by the account holder, spouse and any tax dependents.* Any funds the employee or the University contribute to the HSA may not be withdrawn on a tax free basis for medical expenses incurred by the employee's same sex domestic partner. An employee's same-sex domestic partner covered by the University's HDHP plan may elect an HSA on their own through Health Savings Administrators to cover their medical expenses throughout the year. The employee and the same sex domestic partner will each be subject to the IRS pre-tax limits of $6,150 for family coverage. The University will contribute the $1,000 (over the course of the year) to the employee's HSA.

*See IRS Publication 969 for more details regarding qualified medical expenses.

Enrolling in a Health Savings Account

For more information or to enroll in a Health Savings Account (HSA), complete the HSA Enrollment Form. Contact HealthSavings Administrators with any questions at 888-354-0697.

Leaving the University - Next steps with your HSA

When you leave the University, the money in your health savings account is yours to keep, and rolls over year after year. You can continue to use it for qualified medical expenses for you, your spouse, and your tax dependents, and your account will remain open until you choose to close it. Just note that UR has been paying the annual $45 administrative fee for your account, so you'll be charged with the fee each year once you leave.

If you remain enrolled in the high deductible health plan (HDHP), either through a new employer, COBRA, or an individually-purchased insurance policy, then you'll be eligible to contribute to your HSA.

If you have a HDHP through a new employer with an HSA administrator other than HealthSavings Administrators, you can:

  1. Have two health savings accounts
  2. Ask your new employer to contribute to your current health savings account
  3. Roll over money from your current HSA to a new one

If you have a HDHP through an individually-purchased insurance policy or via COBRA, you may continue to contribute money to your HSA online, through payroll deduction, or via check. Your account will not change -- the account number and the debit card(s) will remain the same, and your online access will remain the same. When you login to your account, you'll see your former account, as well as your new individual account.