Page 11 - 2015 First Busey Enrollment Guide
P. 11
First Busey Corporation
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. The IRS contribution limits for 2015 are $3,350 for individuals
and $6,650 for families. Individuals age 55 and older may contribute an
additional $1,000 to the HSA under the “catch-up” provision. 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funds can be withdrawn at any time to cover qualiied medical expenses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.
Unlike a traditional Flexible Spending Account (FSA), there is no use-
it-or-lose-it rule with an HSA. Contributions made to the account will
automatically roll over year after year.
When you participate in an HSA, you are not eligible for the
traditional FSA. If you are currently enrolled in an FSA, you
cannot contribute to an HSA until you are no longer enrolled in
an FSA, unless you elect to participate in a limited FSA (dental
and vision only).
In addition, you may not contribute to an HSA while your spouse is
contributing to an FSA through his or her employer. Conversely, a
spouse may not contribute to an FSA while you are contributing to an
HSA. Unlike the FSA, HSA funds are not available until they have been
accumulated in your HSA bank 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. The IRS contribution limits for 2015 are $3,350 for individuals
and $6,650 for families. Individuals age 55 and older may contribute an
additional $1,000 to the HSA under the “catch-up” provision. 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funds can be withdrawn at any time to cover qualiied medical expenses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.
Unlike a traditional Flexible Spending Account (FSA), there is no use-
it-or-lose-it rule with an HSA. Contributions made to the account will
automatically roll over year after year.
When you participate in an HSA, you are not eligible for the
traditional FSA. If you are currently enrolled in an FSA, you
cannot contribute to an HSA until you are no longer enrolled in
an FSA, unless you elect to participate in a limited FSA (dental
and vision only).
In addition, you may not contribute to an HSA while your spouse is
contributing to an FSA through his or her employer. Conversely, a
spouse may not contribute to an FSA while you are contributing to an
HSA. Unlike the FSA, HSA funds are not available until they have been
accumulated in your HSA bank account.
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