Health Savings Account

Q: How does the HSA work?

A: Determine how much you want to contribute during the year to cover out-of-pocket health expenses. Throughout the year, we withhold that amount from your paycheck pre-tax in equal installments and deposit it into your HSA.

When you have an eligible expense, submit a claim for reimbursement or use your HSA debit card. Save your receipts; you may be required by the IRS to verify or submit expenses.

Q: How do the HSA & FSA differ?

A: While similar to an FSA, there are key differences.

• An HSA is not subject to the "use it or lose it" rule.
• You may carry over your balance from one year to the next.
• The HSA must be used with an HDHP.
• If you leave employment, the HSA still belongs to you.

Q: Who is eligible for an HSA?

A: To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP).

Q: What's the annual maximum?

A: The maximum may adjust annually for inflation. For the current maximum, visit irs.gov. There is no minimum.

Q: When is this money available?

A: Funds are available as they are deducted from your paychecks and deposited into your account. Unlike the FSA, funds are not available in a lump sum up front.

Watch this video for more info about the HSA debit card:

Q: Is the HSA "use it or lose it"?

A: Nope. The HSA is not subject to the FSA's calendar year rules. All of your funds roll over each year and remain available. You will need to re-enroll each year to continue deductions.

Watch this video fore more info on determining how much to save:

Q: Can I have both FSA and HSA?

A: Although IRS rules state you cannot have both an HSA and FSA in the same tax year, there are exceptions. You may use the HSA with the child-care DCA and the parking & transit FSAs.

You may also use an LPFSA concurrently with HSA to cover dental and vision and post-deductible expenses only. It is subject to the same IRS and "use it or lose it" regulations as other FSA funds. Here's more info about holding an HSA and LPFSA concurrently:

Q: Can I change my election any time?

A: Yes, changes may be made to HSA elections throughout the year as long as the total annual amount does not exceed the maximum allowed by IRS regulations.

If your employment terminates, you still have full, independent access to your funds. Your account remains yours and is available for use until you roll over, exhaust, or close the account. As your balance grows, you may wish to invest your funds. Here is more information on that: