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H S A WHAT IS A HEALTH SAVINGS ACCOUNT?
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A Health Savings Account, or HSA, is a tax-advantaged savings account that works in conjunction with a High-Deductible Health Plan (HDHP). HSA dollars can be used to pay a wide range of qualified medical expenses for you and your covered dependents. Click here for a summary of qualified medical expenses. You must meet the following IRS requirements to be eligible for an HSA:
• You must be enrolled in a High-Deductible Health Plan, such as the Choice Fund HSA Plan. • You must not be covered under another health plan, including Medicare Parts A and B and TRICARE. • You must not be participating in a Medical Flexible Spending Account (FSA) that reimburses for medical expenses, unless it is limited to work with an HSA. • You must not be claimed as a dependent on another person’s tax return.
If you meet the IRS eligibility requirements and enroll in the Choice Fund HSA Plan, an HSA will be opened on your behalf through HSA Bank. Your HSA can be funded by MAA in two ways. In addition, you can fund your HSA with pre-tax payroll contributions. The sum of contributions made by you and MAA cannot exceed the annual IRS limit. The charts below indicate the IRS limits for 2018 for Employee Only Coverage and Family Coverage (Employee + 1 or more dependents) along with the contribution amounts that can be made by you and MAA in 2018*. *If you are between the ages of 55 and 64 in 2018, in addition to the IRS limits indicated in each chart below, the IRS allows you to contribute up to an additional $1,000 to your HSA, which is referred to as a Catch-Up Contribution.
ANNUAL HSA CONTRIBUTIONS IRS LIMITs FOR 2018 + $3,450 (eMPLOYEE ONLY)/ $6,900 (fAMILY)
EMPLOYEE ONLY CONTRIBUTION AMOUNT
FAMILY COVERAGE CONTRIBUTION AMOUNT
WHO MAKES THE CONTRIBUTION?
Type of Contribution
Automatic contribution upon enrollment in the Choice Fund HSA Plan and January 1 Wellness incentives you and your covered spouse can earn by completing various activities throughout the year in our Motivate Me ® program with Cigna
MAA
$250
$500
Up to $500
Up to $6,400** Up to $500/each
MAA
Up to $3,200*
You
Pre-tax payroll contributions
*Maximum amount you can contribute depends on the amount of wellness incentives earned in the year. For example, if you earn $500 in wellness incentives, you can contribute up to $2,700 in pre-tax payroll contributions in 2018. **Maximum amount you can contribute depends on the amount of wellness incentives earned by you and your covered spouse (if applicable) in the year. For example, if you and your spouse earn $1,000 ($500 each) in wellness incentives, you can contribute up to $5,400 in pre-tax payroll contributions in 2018.
You should also know the following about your HSA: • Your pre-tax payroll contributions are added to your HSA each pay period and you may change your HSA contribution at any time during the year through Workday. • Your HSA remains tax-free as long as you use it to pay qualified medical expenses. • You will receive an HSA debit card which can be used at the time of service to pay for eligible expenses or at an ATM to reimburse yourself for eligible expenses you paid out-of-pocket, up to the amount available in your account. You won’t need to submit documentation to substanti- ate your charges, but it’s important to keep your receipts for all expenses paid from your HSA for tax and recordkeeping purposes. • Money in your HSA can earn interest or investment gains tax-free. • If you withdraw funds for non-medical expenses, you will be subject to income tax and, if you’re under age 65, an additional 20% tax penalty. • Unused funds in your HSA carry over at the end of each year with no limit. • If your coverage terminates under the Choice Fund HSA Plan, the money in your HSA is yours to keep.
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