Page 9 - Goodwill Columbus 2022 Benefit Guide

A Guide to Your Benefits | 2022

Health Savings Account (HSA)

As part of our medical plan, Goodwill will contribute to your Health Savings Account (HSA) each calendar quarter. The
HSA is administered by BenefitWallet. Currently, Goodwill contributes $1,000 per year for employee only coverage,
or $2,000 per year for family coverage, to your account. The HSA funds “rollover” from year to year; unlike the FSA
“use it or lose it” provision. Prescription drug expenses are integrated with the medical plan (subject to medical
deductible and applied towards medical out-of-pocket limit).

What is a Health Savings Account?
An HSA is a tax-advantaged medical savings account that is available to individuals enrolled in a qualified high deductible
health plan. Funds contributed to the account are not subject to federal and state income tax (except CA, NJ and AL) at
the time of deposit. Funds rollover and accumulate year after year if not spent. HSAs are owned by the employee and
funds must be used to pay for qualified medical expenses without federal tax liability. Additionally, funds contributed to
an HSA today may be used for healthcare expenses in retirement and will NOT be taxable.

HSAs are administered by an HSA custodian, trustee, or its designee, and HSA account holders must agree to the terms
of the custodial or trust agreement. This is a “portable” account, which means if you have an HSA, you own it! HSAs may
be included in your employee benefits package, but after you set up your account, it’s yours to keep, even if you change
jobs or retire.

IRS guidelines govern HSA eligibility, and not everyone can set up an HSA. You must meet all the following
requirements before you can open an HSA and contribute to it each month:

• You are covered under a qualifying high deductible health plan (HDHP) as defined by IRS rules.
• You are not covered under another health plan that is not a qualified HDHP, such as coverage under a spouse's
non-HDHP with copays, a general-purpose health FSA, or a general-purpose health reimbursement arrangement
(HRA).
• You are not entitled to Medicare.
• You are not eligible to be claimed as a dependent on another person's tax return.

You continue to maintain your HSA eligibility each month that you meet the conditions listed above on the first day of the
month. Plus, it’s up to you to decide if you meet these eligibility requirements. This is also important to know when making
HSA contributions.

How much can an employee contribute to an HSA?
The IRS sets limits* on how much you can contribute to your HSA each year. These limits combine contributions from all
sources, including but not limited to Goodwill’s contributions. For the 2022 tax year, the following contribution limits
apply:
• Individual coverage: $3,650 (minus Goodwill’s $1,000 annual contribution, is $2,650 from employee)
• Family coverage: $7,300 (minus Goodwill’s $2,000 annual contribution, is $5,300 from employee)
• Additional contribution allowance of $1,000 for an accountholder age 55 or older as of December 31, 2022.
We encourage employees to contribute $10 per pay to their Health Savings Account (HSA) to cover future medical costs
and save money in taxes. When $10 per pay is contributed to your HSA, this gives you $10 of spending power, but $10
deposited to your regular bank account is only about $6 per pay after taxes* are deducted. The amount may be changed any
time during the year by selecting “Benefits” in Dayforce.

*Please note, Goodwill Columbus does not provide tax advice, recommends that employees consult with their personal tax advisor, and is not responsible

for an employee’s compliance with IRS rules for Health Savings Accounts and Other Tax-Favored Health Plans (IRS Publication 969).

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