Page 9 - Ideal Option 2020 New Hire Guide
P. 9
2020
Ideal Option Enrollment Guide
HEALTH SAVINGS ACCOUNT (HSA)
A health savings account (HSA) is a tax-favored savings account which works in conjunction with your health
plan coverage. HSA dollars can be used to pay for qualiied medical expenses such as deductibles, copays, dental,
and vision care. For a complete list of qualiied medical expenses, visit www.irs.gov in IRS Publication 502.
HSA Major Benefits Opening an HSA
Funds always belong to you We partner with Cigna and HSA
Funds always roll over from year to year Bank for our HSA program. If
Lowers your taxable income you enroll in the Choice Fund
HDHP, Cigna will automatically
HSA Triple Tax Savings open an HSA account for you
Tax deduction when you contribute to your account through HSA Bank.
Tax-free earnings through investment HSA Eligibility
Tax-free withdrawal for qualiied medical expenses You may open and contribute pre-
If you elect the HDHP plan and meet the eligibility requirements to tax to an HSA under the following
circumstances.
open an HSA, Ideal Option will contribute $1,200 to your HSA, $100.00
per month. Enrolled in an IRS qualiied
high deductible health
2020 HSA Funding Limits plan (HDHP)
Coverage Level Limit Cannot be enrolled in a
Individual Coverage $3,550 traditional PPO plan through
Family Coverage $7,100 your spouse or other
Age 55 or Older Contribute an additional $1,000 on top of these amounts employer sponsored plan
options
Cannot be enrolled in a
How to Spend Your HSA Government sponsored
Below is a list of eligible expenses you can pay using your HSA savings. program (Medicare, Medicaid,
Tricare, etc.)
Make sure to keep all receipts and billing statements regarding the way Cannot have received VA
you utilize your HSA savings. beneits within the last three
Medical deductibles, Rx copayments, and coinsurance payments months (unless receiving
beneits for a service related
Medical, dental, and vision care services disability)
Medical, dental, and vision care services for your spouse and/or tax Cannot be claimed as a
dependents dependent on someone else’s
Medicare Part B and D and COBRA coverage tax return
Cannot have an HSA and
Over-the-counter medications including menstrual products (written healthcare FSA; your spouse
prescriptions no longer needed) cannot have a healthcare FSA
through his/her own employer
9
Ideal Option Enrollment Guide
HEALTH SAVINGS ACCOUNT (HSA)
A health savings account (HSA) is a tax-favored savings account which works in conjunction with your health
plan coverage. HSA dollars can be used to pay for qualiied medical expenses such as deductibles, copays, dental,
and vision care. For a complete list of qualiied medical expenses, visit www.irs.gov in IRS Publication 502.
HSA Major Benefits Opening an HSA
Funds always belong to you We partner with Cigna and HSA
Funds always roll over from year to year Bank for our HSA program. If
Lowers your taxable income you enroll in the Choice Fund
HDHP, Cigna will automatically
HSA Triple Tax Savings open an HSA account for you
Tax deduction when you contribute to your account through HSA Bank.
Tax-free earnings through investment HSA Eligibility
Tax-free withdrawal for qualiied medical expenses You may open and contribute pre-
If you elect the HDHP plan and meet the eligibility requirements to tax to an HSA under the following
circumstances.
open an HSA, Ideal Option will contribute $1,200 to your HSA, $100.00
per month. Enrolled in an IRS qualiied
high deductible health
2020 HSA Funding Limits plan (HDHP)
Coverage Level Limit Cannot be enrolled in a
Individual Coverage $3,550 traditional PPO plan through
Family Coverage $7,100 your spouse or other
Age 55 or Older Contribute an additional $1,000 on top of these amounts employer sponsored plan
options
Cannot be enrolled in a
How to Spend Your HSA Government sponsored
Below is a list of eligible expenses you can pay using your HSA savings. program (Medicare, Medicaid,
Tricare, etc.)
Make sure to keep all receipts and billing statements regarding the way Cannot have received VA
you utilize your HSA savings. beneits within the last three
Medical deductibles, Rx copayments, and coinsurance payments months (unless receiving
beneits for a service related
Medical, dental, and vision care services disability)
Medical, dental, and vision care services for your spouse and/or tax Cannot be claimed as a
dependents dependent on someone else’s
Medicare Part B and D and COBRA coverage tax return
Cannot have an HSA and
Over-the-counter medications including menstrual products (written healthcare FSA; your spouse
prescriptions no longer needed) cannot have a healthcare FSA
through his/her own employer
9
