Page 6 - 2020 Thompson Coburn Benefits Guide
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HOW THE HSA WORKS
The Health Savings Account (HSA) is a tax-exempt account established to
pay for medical expenses. The HSA works like a personal savings account,
but you can only use the money to pay for qualiied health-related
expenses. HSAs can be established with a bank, insurance company, or
other IRS-approved trustee. Thompson Coburn utilizes Optum Bank for
employee and employer HSA contributions.
As an employee, you may make pre-tax contributions into your HSA
up to the IRS limits. The 2020 HSA limits are $3,550 for individual and
$7,100 for all other HDP tiers. The HSA limits include the employer and
employee contributions. The minimum amount to contribute to an HSA
per pay period is $10. You must contribute this minimum in order to
receive the Firm’s HSA per pay period contribution.
For employees that achieved the 2019 wellness credit goal, Thompson
Coburn will contribute $27.09 per pay period (totaling $650 over the
course of the year) to employees enrolled in the HDP Core plan and
$20.84 per pay period (totaling $500 over the course of the year) to
employees enrolled in the HDP Buy-up plan for 2020.
With an HSA, you can roll over any unused contributions from year-to-
year, allowing you to accumulate a balance for future medical expenses.
Investment options are available once your balance reaches certain levels
(this is different from a medical lexible spending account (FSA), which
does not allow you to roll over unused funds—unused FSA funds are
forfeited at the end of the plan year).
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The Health Savings Account (HSA) is a tax-exempt account established to
pay for medical expenses. The HSA works like a personal savings account,
but you can only use the money to pay for qualiied health-related
expenses. HSAs can be established with a bank, insurance company, or
other IRS-approved trustee. Thompson Coburn utilizes Optum Bank for
employee and employer HSA contributions.
As an employee, you may make pre-tax contributions into your HSA
up to the IRS limits. The 2020 HSA limits are $3,550 for individual and
$7,100 for all other HDP tiers. The HSA limits include the employer and
employee contributions. The minimum amount to contribute to an HSA
per pay period is $10. You must contribute this minimum in order to
receive the Firm’s HSA per pay period contribution.
For employees that achieved the 2019 wellness credit goal, Thompson
Coburn will contribute $27.09 per pay period (totaling $650 over the
course of the year) to employees enrolled in the HDP Core plan and
$20.84 per pay period (totaling $500 over the course of the year) to
employees enrolled in the HDP Buy-up plan for 2020.
With an HSA, you can roll over any unused contributions from year-to-
year, allowing you to accumulate a balance for future medical expenses.
Investment options are available once your balance reaches certain levels
(this is different from a medical lexible spending account (FSA), which
does not allow you to roll over unused funds—unused FSA funds are
forfeited at the end of the plan year).
6
