Health Savings Account (HSA)
Who Is Eligible and When? When you are enrolled in either of the Harvard Pilgrim HMO HSA medical plans, Thomas College offers you an employer- sponsored Health Savings Account (HSA) through HSA Bank. With an HSA, employees can save money and budget for qualified medical expenses. HSAs are tax-advantaged savings accounts that accompany High Deductible Health Plans (HDHPs). How Do I Benefit from an HSA? There are many advantages to an HSA, including: • Tax-free deposits – The money you contribute to your HSA isn’t taxed (up to the IRS annual limit). • Flexibility t o start, stop or change your HSA contributions at any time Tax-free earnings – Your interest and any investment earnings grow tax-free. • Tax-free withdrawals – The money used toward eligible health care expenses isn’t taxed – now or in the future. Setting aside pre-tax dollars into your HSA means you pay fewer taxes and increase your take-home pay by your tax savings. You save money on eligible expenses that you are paying for out of your pocket. The amount you save depends on your tax bracket. For example, if you are in the 30 percent tax bracket, you can save $30 on every $100 spent on eligible health care expenses. HSA funds roll over from year to year and accumulate in your account. There is no “use-it-or-lose-it” rule with HSAs, and you decide how and when to use your HSA funds, which can be used for eligible expenses you have now, in the future, or during retirement. And when you have a certain balance in your HSA, investment opportunities are available. Your HSA funds can be used used tax free to pay for out-of-pocket qualified medical expenses, even if the expenses are not covered by the plan. This includes expenses incurred by your spouse or dependent, even if not covered on your medical plan. How Much Can I Contribute?
Once your HSA is established, you can contribute to your account up to a total of $4,300 you have individual coverage and $8,550 i f you have family coverage in 202 5 . Additionally, if you are age 55 or older, you may make an additional "catch- up" contribution of $1,000. You may change your contribution amount at any time throughout the year as long as you don't exceed the annual maximum. You can then use your HSA dollars tax-free to pay for eligible health care expenses. You save money on expenses you’re already paying for, such as doctors’ office visits, prescription drugs, and much more. Best of all, you decide how and when to use your HSA dollars.
This Guide is for illustrative purposes only and is not a legal contract, contract of employment or guarantee of coverage. Any benefits payable will be subject to the terms and conditions of the insurance policy issued by the insurance company and relevant plan document.
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