HSA
An HSA works with a high deductible heath plan (HDHP), and allows you to use before-tax dollars to reimburse yourself for eligible out-of-pocket medical expenses for you, your spouse and your dependents, which in turn saves you on taxes and increases your spendable income. Both you and your employer can contribute to your HSA. HSA’s have many benefits such as: • An HSA is yours. Funds in your HSA account stay with you, even if you change jobs. • Contribute tax free. An HSA reduces your taxable income. The money is tax free both when you put it in and when you take it out to cover qualified medical expenses. • Grow funds tax free. An HSA grows with you. When your HSA account balance reaches the minimum balance requirement, your funds can be invested in mutual funds yielding tax-free earnings. • Spend tax free. Withdrawals used for eligible expenses are tax free. • Funds can be withdrawn anytime for medical expenses. • After age 65, the funds can be used for any purpose, without penalty.
Notes: If you choose to enroll in the HSA Medical Plan you can also choose to enroll in the HSA. If you choose to enroll in the HSA you cannot also enroll in the FSA.
Employees enrolled in the CIGNA HDHP medical plan are eligible to receive an HSA employer contribution of $750 (individual) or $1,500 (family).
2025 HSA Contribution Limits: • $4,300 Individual • $8,550 Family
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