Page 14 - Busey 2021 Annual Benefits Enrollment
P. 14
2021
What is a Health Savings Account
(HSA)?
When an associate participates in a qualiied CDHP
(and is not covered by another non-CDHP medical
plan), associates are eligible to participate in a Health
Savings Account (HSA). An HSA allows associates
to pay for qualiied medical expenses under a CDHP
with pre-tax dollars, thus reducing taxable income.
Associates can make contributions to the account up to
the allowed maximum contribution limits. These funds
can be withdrawn at any time to cover qualiied medical
expenses as deined by the IRS, such as deductibles,
medical services, pharmacy charges, or post retirement
medical expenses, for example. Contributions made to
the account will automatically roll over year after year.
When you participate in an HSA, you are not
eligible for the Healthcare FSA. If you are
currently enrolled in a Healthcare FSA, you cannot
contribute to an HSA until you are no longer
enrolled in a Healthcare FSA. However, you may
elect to participate in a Limited Health FSA (dental
and vision expenses only) if you participate in an
HSA.
In addition, you may not contribute to an HSA while
your spouse is contributing to a Healthcare FSA
through his or her employer. Conversely, a spouse
may not contribute to a Healthcare FSA while you
are contributing to an HSA. Unlike the Healthcare
FSA, HSA funds are not available until they have been
accumulated in your HSA account.
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What is a Health Savings Account
(HSA)?
When an associate participates in a qualiied CDHP
(and is not covered by another non-CDHP medical
plan), associates are eligible to participate in a Health
Savings Account (HSA). An HSA allows associates
to pay for qualiied medical expenses under a CDHP
with pre-tax dollars, thus reducing taxable income.
Associates can make contributions to the account up to
the allowed maximum contribution limits. These funds
can be withdrawn at any time to cover qualiied medical
expenses as deined by the IRS, such as deductibles,
medical services, pharmacy charges, or post retirement
medical expenses, for example. Contributions made to
the account will automatically roll over year after year.
When you participate in an HSA, you are not
eligible for the Healthcare FSA. If you are
currently enrolled in a Healthcare FSA, you cannot
contribute to an HSA until you are no longer
enrolled in a Healthcare FSA. However, you may
elect to participate in a Limited Health FSA (dental
and vision expenses only) if you participate in an
HSA.
In addition, you may not contribute to an HSA while
your spouse is contributing to a Healthcare FSA
through his or her employer. Conversely, a spouse
may not contribute to a Healthcare FSA while you
are contributing to an HSA. Unlike the Healthcare
FSA, HSA funds are not available until they have been
accumulated in your HSA account.
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