Page 10 - Guide
P. 10
2017 New Hire Guide
Health Savings Account
To be eligible for an
HSA, the following
must be true. Health savings accounts (HSAs) are tax advantaged bank accounts. The
1. You must have coverage contributions you make to HSAs are not subject to federal income,
under a qualiied plan such
as Fontbonne’s HSA plan social security, Medicare, and most state income tax. The earnings on the
account are tax free. In addition, withdrawals can be made from HSAs on
2. You cannot have coverage a tax-free basis as long as they are used for qualiied health expenses. If
under a non-qualiied plan;
for example, you cannot open you enroll in the HSA plan and meet all eligibility requirements set by the
and contribute money to an IRS, you may contribute to an HSA account.
HSA if you are contributing Note: employees who sign up for the high deductible (base) plan will have an HSA opened
money to the health lexible simultaneously.
spending account (FSA);
if you have money in the
health FSA on December 31, Contributing to Your HSA
2016 (including any rollover When you enroll in the QHDHP Plan for 2017, you can make pre-tax
funds), you cannot contribute contributions to your HSA through payroll deductions. It’s your choice
to an HSA until the following
plan year on January 1, 2017 to contribute or not. The IRS limits the amount of pre-tax dollars you
can contribute to your HSA each year. For 2017, you can contribute up to
3. You cannot be enrolled in $3,400 for single coverage and $6,750 for family coverage. If you enroll
Medicare or Medicaid
mid-year, you need to prorate your personal contribution limit.
4. You cannot be claimed as
a dependent on another To pro-rate, take the total annual contribution allowed based on your
person’s tax return
coverage level, multiply it by the number of months in the year you
5. You cannot have received VA qualify, then divide the amount by 12. Your eligibility is based on your
Medical beneits within the coverage status on the irst day of the month. For example, if you
last three months
enrolled in the QHDHP Plan on April 1, your annual contribution limit is
as follows.
Single Coverage
$3,400 x 9/12 = $2,550
Family Coverage
$6,750 x 9/12 = $5,062.50
Note: if you are age 55 or older by the end of 2017, you may also contribute an additional $1,000
as a catch-up contribution for 2017.
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Health Savings Account
To be eligible for an
HSA, the following
must be true. Health savings accounts (HSAs) are tax advantaged bank accounts. The
1. You must have coverage contributions you make to HSAs are not subject to federal income,
under a qualiied plan such
as Fontbonne’s HSA plan social security, Medicare, and most state income tax. The earnings on the
account are tax free. In addition, withdrawals can be made from HSAs on
2. You cannot have coverage a tax-free basis as long as they are used for qualiied health expenses. If
under a non-qualiied plan;
for example, you cannot open you enroll in the HSA plan and meet all eligibility requirements set by the
and contribute money to an IRS, you may contribute to an HSA account.
HSA if you are contributing Note: employees who sign up for the high deductible (base) plan will have an HSA opened
money to the health lexible simultaneously.
spending account (FSA);
if you have money in the
health FSA on December 31, Contributing to Your HSA
2016 (including any rollover When you enroll in the QHDHP Plan for 2017, you can make pre-tax
funds), you cannot contribute contributions to your HSA through payroll deductions. It’s your choice
to an HSA until the following
plan year on January 1, 2017 to contribute or not. The IRS limits the amount of pre-tax dollars you
can contribute to your HSA each year. For 2017, you can contribute up to
3. You cannot be enrolled in $3,400 for single coverage and $6,750 for family coverage. If you enroll
Medicare or Medicaid
mid-year, you need to prorate your personal contribution limit.
4. You cannot be claimed as
a dependent on another To pro-rate, take the total annual contribution allowed based on your
person’s tax return
coverage level, multiply it by the number of months in the year you
5. You cannot have received VA qualify, then divide the amount by 12. Your eligibility is based on your
Medical beneits within the coverage status on the irst day of the month. For example, if you
last three months
enrolled in the QHDHP Plan on April 1, your annual contribution limit is
as follows.
Single Coverage
$3,400 x 9/12 = $2,550
Family Coverage
$6,750 x 9/12 = $5,062.50
Note: if you are age 55 or older by the end of 2017, you may also contribute an additional $1,000
as a catch-up contribution for 2017.
10
