Page 14 - 2022 Benegit Guide

Health Savings Account (HSA) Highlights

TAX- TAX-
DEDUCTIBLE TAX-FREE DEFERRED IT’S YOURS

Contributions to HSA are 100% Withdraw to pay qualified Interest earnings accumulate Unlike a Flexible Spending
deductible (up to legal limit) medical expenses, including tax-deferred, and if used Account (FSA), unused money in
– just like an IRA dental and vision, to pay qualified medical your HSA rolls over, isn’t forfeited
and never taxed expense, are tax-free at the end of the year, it continues
Eligibility Requirements to grow, tax-deferred

• You must be enrolled in the SSC CDHP medical plan. You cannot be enrolled in any other health plan that
is not a qualified high deductible health plan. For example, your spouse’s medical plan or any Health Care
Flexible Spending Account (including your spouse’s) that can reimburse you for eligible medical expenses.
• You cannot be enrolled in Medicare, nor can you be claimed as a dependent on someone else’s tax return.
Eligible Expenses

• Health care expenses that are covered by most Health Care Flexible Spending Accounts, including medical,
dental, and vision expenses (see IRS Publication 502 for more details).
• Premiums for long-term care insurance, health care continuation coverage (COBRA and Medicare).
• You can use your HSA to pay for qualified expenses for any dependents you claim on your tax return,
not just those covered by your medical plan.
• Expenses for services incurred after your HSA was set up. You must have sufficient funds in your HSA.
Setting Up Your HSA

• When you enroll in the CDHP, your HSA will be set up for you with Anthem Actwise. You can view and
manage your account online. You must re-enroll for the 2022 plan year.
• You will receive a debit card once you set up your HSA that you can use to pay for qualified expenses.
• If you already have an HSA, you may roll over that balance to an Anthem Actwise HSA.
• You may start investing once your account balance reaches a specified balance. You can choose from
variety of different investment options. Your funds are fully vested upon deposit.
• Banking fees may apply for certain services. You can review the fee schedule when you complete
your application.
• Once your HSA balance reaches $1,000, you can invest additional money in mutual funds.

You are responsible for making sure your expenses are eligible. If you use your HSA to pay for a non-qualified
medical expense, you will be taxed on the amount as gross income and subject to an additional 20% penalty.
After age 65, funds can be used as supplemental income, subject to income taxes, but no penalty.

14 2022 Health and Benefits Guide