HEALTH SAVINGS ACCOUNTS (HSA) For employees who elect the HDHP, you have the option of opening a Health Savings Account (HSA). The HSA-eligible plan provides a way to save money that becomes available in future years for health care expenses.
• In 2023 individuals can contribute up to $3,850 and families can contribute up to $7,750 to their HSA (these totals represent the total of employee and employer contributions). • If you are 55 or older, you can make a $1,000 catch-up contribution. • Contributions to an HSA can be made on a pre-tax or post-tax basis, and funds within the HSA grow without incurring taxes. Funds are withdrawn tax-free for healthcare related needs
without having to file receipts, although you should keep your
receipts in case you are ever audited. • Money deposited in the HSA by the employee AND employer immediately become the employee’s asset and is portable. • If you participate in the HSA, neither you nor your spouse can contribute to a Healthcare FSA.
The Village will be contributing $1,300 for employees participating in the HDHP with the HSA. You will receive $300 in January and $40 per paycheck for an annual total of $1,300. Note: The amount will be prorated for employees whose benefits start after January 1, 2023
What is this account and how does it work? An HSA account can be funded with pre-tax dollars by you, your employer or both to help pay for eligible medical expenses.
Maximum Contribution Allowed
Can money in accounts be “rolled over”? Yes, amounts left in your HSA account can be rolled over year to year and is
Pre-Tax Plan
Employee only coverage: $3,850 Family coverage: $7,750 Catchup contribution (55 year of age or older): $1,000
Health Savings Account (HSA)
portable if you leave employment of the company
The benefit plan information shown in this guide is illustrative only. This information is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice. The information for this benefit has been provided by Village of Pinehurst. OneDigital is not responsible for the content on this page.
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