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
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 - $1000
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.
Vanguard No-load Mutual Funds - no minimums
Debit card from EPS 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holder, spouse and any tax dependents.* Any funds the employee or the University contribute to the HSA may not be withdrawn on a tax free basis for medical expenses incurred by the employee's same sex domestic partner.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 Health Savings Administrators with any questions at 888-354-0697.