Page 10 - Eden Housing 2022 Benefit Guide

How the Health Savings Account (HSA) Works

When you enroll in a High-Deductible Health Plan (HDHP), you may be eligible to open a Health Savings
Account (HSA) through Kaiser to help pay for out-of-pocket health care expenses. An HSA makes it easy to
pay for current medical, dental and vision costs and save for future health care needs now or into retirement.
The Benefits of an HSA

HSAs give you a triple tax advantage:
1. Set aside tax-free money*.
2. Pay for eligible expenses tax-free.
3. Unused funds roll over year to year and can be invested. All earnings are tax-free.
Eden Housing employer contribution:

Eden Housing will contribute up to $700 per calendar year if you enroll in the High Deductible Health Plan
and select a Health Savings Account (HSA). The employer contribution is provided in each paycheck.

Also, keep in mind that the HSA is yours to keep, even if you leave the company.
HSA Contributions

You can contribute up to the annual IRS maximums (including the age 55+ catch-up contributions).
Contributions cannot exceed the annual IRS maximums listed below:

Coverage Type 2022 Maximum Contribution Limit

Individual Coverage $3,650
Family Coverage $7,300
Age 55+ Catch-up Contribution Additional $1,000

Keep in mind, there are a few important rules you need to follow. If you use your HSA funds for expenses the
IRS considers eligible, the money remains tax-free. If you use funds for ineligible expenses, you will pay
applicable taxes and an excise tax penalty (currently 20%). Kaiser will send you an HSA debit card to pay for
eligible expenses.
HSA Details
• You must be enrolled in a qualified High Deductible Health Plan (HDHP).
• You cannot be covered under another non-qualified health plan, including your spouse’s Health Care
Flexible Spending Account
• You cannot be enrolled in Medicare or Tricare
• You cannot be claimed as a dependent on someone else’s tax return

Questions? Refer to IRS Publication 969 for complete rules.
*State taxes may still apply in CA, NJ, and AL. For detailed tax implications of an HSA, please contact your professional tax
advisor.

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