Page 8 - Future Steps
P. 8
Benefits Enrollment
Health Savings Account
Qualifying Medical
Expense (HSA)
HSA funds may be withdrawn
without tax or penalty if used for Health Savings Account (HSA)
qualiied medical expenses.
The second part of the consumer driven health plan is the HSA, a tax-
Qualiied medical expenses favored savings account for qualiied health expenses. Below is a summary
from IRS Section 213 (this of key features of the HSA.
is the same list used for
qualiied FSA expenses) Contributions made by both you and NISC are exempt from income
Or reference IRS Publication and social security taxes
502, “Medical and Dental Company HSA contributions will be made the irst payroll of each
Expenses”
month and employee contributions will be made semi-monthly
Employee owns and manages the account
Remaining balances accumulate from year to year
Balances over $2,500 may be invested with tax-free growth
You can change your contribution at any time during the year
HSA withdrawals for qualiied medical expenses are tax-free (all
other withdrawals are subject to tax and a 20% penalty)
HSA Contributions
Employee Employee +1 Family
NISC HSA contribution $1,200 $1,200 $1,200
HSA contribution maximum* $3,400 $6,750 $6,750
* Employees age 55 or older prior to December 31 may contribute an additional $1,000
annually as a catch-up contribution
Eligibility for HSA Contribution
Must elect NISC health coverage
Generally you cannot be covered under any other health insurance
plan, healthcare lexible spending account (FSA), Medicare part A or
B, and you cannot be claimed as a dependent on another person’s tax
return
8
Health Savings Account
Qualifying Medical
Expense (HSA)
HSA funds may be withdrawn
without tax or penalty if used for Health Savings Account (HSA)
qualiied medical expenses.
The second part of the consumer driven health plan is the HSA, a tax-
Qualiied medical expenses favored savings account for qualiied health expenses. Below is a summary
from IRS Section 213 (this of key features of the HSA.
is the same list used for
qualiied FSA expenses) Contributions made by both you and NISC are exempt from income
Or reference IRS Publication and social security taxes
502, “Medical and Dental Company HSA contributions will be made the irst payroll of each
Expenses”
month and employee contributions will be made semi-monthly
Employee owns and manages the account
Remaining balances accumulate from year to year
Balances over $2,500 may be invested with tax-free growth
You can change your contribution at any time during the year
HSA withdrawals for qualiied medical expenses are tax-free (all
other withdrawals are subject to tax and a 20% penalty)
HSA Contributions
Employee Employee +1 Family
NISC HSA contribution $1,200 $1,200 $1,200
HSA contribution maximum* $3,400 $6,750 $6,750
* Employees age 55 or older prior to December 31 may contribute an additional $1,000
annually as a catch-up contribution
Eligibility for HSA Contribution
Must elect NISC health coverage
Generally you cannot be covered under any other health insurance
plan, healthcare lexible spending account (FSA), Medicare part A or
B, and you cannot be claimed as a dependent on another person’s tax
return
8
