Page 11 - Fontbonne 2021 New Hire Guide
P. 11
2021
Fontbonne University Enrollment Guide
HEALTH SAVINGS ACCOUNT (HSA)
An HSA is a tax-favored savings account which works in conjunction with your health plan coverage. If you
enroll in a qualiied high deductible health plan (Fontbonne’s HSA Plan) and meet all eligibility requirements set
by the IRS, you may contribute to an HSA.
An HSA is similar to a checking account; you must have money in the account in order to use it. If you don’t
have funds in your HSA and must pay out-of-pocket with cash or another bank account, you can reimburse
yourself from the HSA at a later date when the funds are available.
HSA Major Benefits HSA Triple Tax Savings
Funds always belong to you (even if you leave/ Tax-free deductions when you contribute to your
retire) account
Funds always rollover to use the following year Tax-free earnings through investment
(no “use it or lose it” provision) opportunities
Your contribution lowers your taxable income Tax-free withdrawals for qualiied medical
expenses
2021 HSA Funding Limits
Fontbonne Contributes to Your Coverage Level Limit
HSA! Individual Coverage $3,600
Fontbonne continues to contribute money into an HSA Family Coverage $7,200
account, called seed money, for employees who newly
elect the HSA Plan. This $250 seed contribution will Age 55 or Older Additional $1,000
count toward the IRS annual maximum contributions.
11
Fontbonne University Enrollment Guide
HEALTH SAVINGS ACCOUNT (HSA)
An HSA is a tax-favored savings account which works in conjunction with your health plan coverage. If you
enroll in a qualiied high deductible health plan (Fontbonne’s HSA Plan) and meet all eligibility requirements set
by the IRS, you may contribute to an HSA.
An HSA is similar to a checking account; you must have money in the account in order to use it. If you don’t
have funds in your HSA and must pay out-of-pocket with cash or another bank account, you can reimburse
yourself from the HSA at a later date when the funds are available.
HSA Major Benefits HSA Triple Tax Savings
Funds always belong to you (even if you leave/ Tax-free deductions when you contribute to your
retire) account
Funds always rollover to use the following year Tax-free earnings through investment
(no “use it or lose it” provision) opportunities
Your contribution lowers your taxable income Tax-free withdrawals for qualiied medical
expenses
2021 HSA Funding Limits
Fontbonne Contributes to Your Coverage Level Limit
HSA! Individual Coverage $3,600
Fontbonne continues to contribute money into an HSA Family Coverage $7,200
account, called seed money, for employees who newly
elect the HSA Plan. This $250 seed contribution will Age 55 or Older Additional $1,000
count toward the IRS annual maximum contributions.
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