2018 Buchanan Hauling Benefit Guide
What is an HSA? An HSA (Health Savings Account) is a tax-free account you can use to pay for current and future medical expenses (even medical expenses during retirement). An HSA has triple tax benefits: • The money goes in tax-free • The money grows tax-free • Your withdrawals for qualified medical expenses – including any earnings – are tax-free. WHO’S ELIGIBLE? You’re eligible to enroll in an HSA if: • You enroll in a high deductible health plan such as the HSA plans. • Your only coverage is a high deductible health plan, and you have not signed up for Medicare coverage. If you’re covered under your spouse’s plan and that plan is not a high deductible health plan or your spouse contributes to a Health Care FSA, then you are NOT eligible to contribute to an HSA. You can contribute to your account – You decide how much to contribute up to the IRS limits below: Opening your HSA Account As the owner of the account, employees will need to set up an account if not already completed. The website is www.HSAauthority.com. The Buchanan Hauling code is 138537 . If you have any further questions, please contact Kimberley Brown in the HR department. If you enroll in the HSA plans, your account will need to be opened with HSA Authority no later than May 1st. to facilitate pre-tax payroll deductions.
PAY HEALTH CARE EXPENSES Each time you have a qualified expense, you decide whether to: • Pay out of your pocket and let your HSA grow, earning interest for future eligible expenses (e.g. medical expenses during retirement). • Use your HSA to pay for eligible medical expenses, such as your annual deductible and coinsurance. Your HSA can also help to pay for vision care, dental care, and prescription drugs. (For a complete list of eligible expenses, visit www.irs.gov.) ADVANTAGES OF AN HSA An HSA allows you to pay for health care expenses with pre- tax dollars. Money in an HSA can be invested much like 401(k) funds are invested. Unused money in an HSA account is not forfeited at the end of the year and is carried forward. Also, your HSA is yours to keep which means that you can take it with you if you retire.
Enrollment Tier
Amount
Employee Only Coverage
$3,450 $6,850 $1,000
Family Coverage
Additional “Catch Up” if 55 or Older
You are not required to make HSA contributions, though it is a good idea to add to your account for tax savings and to help pay for medical expenses. You can contribute with pre-tax payroll deductions or contributions made directly to HSA Authority. These amounts are based on IRS limits.
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