Health Savings Account (HSA)
What is a Health Savings Account (HSA)? A HSA is an account that can be funded with your pre-tax dollars, by your employer, or both to help pay for eligible medical expenses not covered by the District insurance plan, including deductibles and coinsurance. The HSA is a bank account, owned by the employee. The money in your HSA account will remain yours, even if you leave employment or switch to the Basic Plan. There is no "use it or lose it" clause with the HSA.
Who is eligible for a HSA? You must be eligible to open an HSA. The Internal Revenue Service requires that you meet these eligibility requirements:
- You are covered under a qualifying high deductible health plan on the first day of the month
- You have no other health coverage except what is permitted by the IRS
- You aren't enrolled in Medicare*, Tricare or another medical plan which provides first dollar coverage
- You can't be claimed as a dependent on someone else's tax return
- You do not have a health flexible spending account or health reimbursement account within your household
*If enrolling in Medicare active employees may not make any contributions to their HSA for 6 months prior to Medicare effective date.
What is the Plus Plan? The District’s Plus Plan is a qualified High Deductible Health Plan that satisfies the IRS standard requirements for deductibles.
When do I use my HSA money? After visiting a physician, facility, or pharmacy, your medical claim will be submitted to your HDHP for payment. Your HSA dollars can be used to pay your out-of-pocket expenses (deductibles and coinsurance) billed by the provider or pharmacy. Alternatively, you can choose to save your HSA dollars for future medical expenses. At your discretion, you may use the money in your HSA to reimburse yourself for eligible medical expenses, including, but not limited to, plan deductible and coinsurance. If you anticipate having very little health care costs, you may even be able to save enough in your HSA over time to cover more than the entire amount of your deductible and/or out-of-pocket limit. HSAs generally earn a competitive interest rate and offer a triple tax advantage to you — contributions are tax-free, earnings are tax-free, and payments from the HSA are tax-exempt if you use them for qualified medical expenses.
Can I contribute to my HSA in addition to the annual District contribution? Yes, subject to annual contribution limits determined by the IRS.
How do I make contributions to my HSA? Each year during Open Enrollment, you elect how much of a HSA contribution you want directed to your HSA. You can also contribute directly to your HSA by making deposits in person.
How do I begin or change my current contribution? If you would like to begin or change your current HSA contribution, you need to log into your BenefitFocus online portal and click on the HSA link in the left side menu.
What is the annual maximum I can contribute to my HSA? HSA contribution maximums in 2023 are $3,850 for single coverage and $7,750 for family coverage. Additional catch-up contributions up to $1,000 are allowed for those age 55 and older. The HSA catch-up contribution limit is not reduced for the year in which the individual reaches age 55 if he or she reaches age 55 after Jan. 1. For example, an individual who is HSA-eligible for all of 2022 and who turns age 55 on Dec. 1, 2023, may make a full $1,000 catch-up.
How much does the District contribute to my HSA? If you are a full-time employee enrolled in the Plus Plan and have coverage January 1, the district will contribute $672 annually to your HSA. You can make additional pre-tax contributions to your Plus Plan HSA through payroll deductions.
The district will make two deposits to HSA's annually.
- First Deposit: January ($448.00 for FT employees)
- Second Deposit: September ($224.00 for FT employees)
**PT employees receive a pro-rated contribution
Where can I obtain information, monthly statements and bank forms for my HSA? By calling the bank where your HSA is housed or logging on to your online banking account with your HSA bank.
What income tax forms will I need to file when I have a HSA? You’ll need to file IRS form 8889, along with your form 1040 individual income tax return, to report any contributions made to your HSA as well as any distributions from your HSA. For contributions, you’ll receive form 1099-SA and for distributions you’ll receive form 5498-SA. If you do not make contributions or distributions during the year, you will not receive these forms. If you have excess contributions to your HSA, you must also file form 5329. IRS Publication