Page 12 - FY21_FOB_Guide_(New_Hire)

FOCUS ON BENEFITS 2021
Goodwill-Easter Seals Minnesota
HEALTH SAVINGS ACCOUNT
A Health Savings Account (HSA) is a tax favored savings account
allowing you to save pre-tax dollars in addition to receiving GESMN
contributions to help pay for medical related expenses.
GESMN will continue to contribute towards your HSA for 2021, if you
are enrolled in a GESMN medical plan, are eligible for an HSA, and
have established your HSA account with Associated Bank.
GESMN’s contributions for 2021 remain at:
$500 Employee only medical coverage = $19.23 per pay
$1,000 Employee + 1 or more medical coverage = $38.46 per pay
2021 IRS limits to your HSA:
• $3,600/single or $7,200/family (employer and employee
contributions combined).
• Age 55 and older may contribute an additional contribution
annually of up to $1,000.
Additional HSA information:
• It is not required for employees to contribute their own HSA
monies to receive the GESMN HSA employer contribution.
• HSA accounts are not available to employees who are eligible for a
spouse’s medical flexible spending Account (FSA), unless the
spouse’s medical FSA is a limited medical FSA. This also includes
GESMN Flexible Spending Accounts.
• If you are covered on the High Deductible Health Plan (HDHP), but
you are also covered on another group health plan (such as your
spouse’s group plan) that is not an HDHP, you would also be
ineligible to make contributions to an HSA.
• Contributions cannot be made to the HSA of members who are
entitled to (eligible and enrolled in) benefits under Medicare, or
other disqualifying coverage. It is the employee’s responsibility to
inform benefits administration to stop employer contributions if
needed.
• Employees that fund a new HSA account with the max
contribution allowed, must be enrolled for the entire plan year,
otherwise penalties will be applied in accordance with
federal/state tax laws.
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TOP REASONS TO
HAVE AN HSA
Tax saving & earned interest — Contributions
are tax-deductible and earn tax-free interest.
Portability — You own your account, so even if
you change jobs, your HSA funds are yours to
keep.
Affordable health coverage — Use the HSA to
cover 100% of out-of-pocket costs for routine
medical expenses, such as office visits, lab tests,
and prescription medications.
Long-term savings — Contributions to your HSA
accumulate and roll over year-to-year with no
limit, which allows the account to grow tax-
deferred.
Retirement bonus — After age 65, funds may
be withdrawn for any reason with no penalties.
(If used for non-medical purposes, however,
taxes will be imposed.)
Safety net — An HSA has no “use it or lose it”
restrictions, so balances can be built up to use
for major medical events.
Coverage for the “extras” — HSA funds may be
used to pay for services often not covered by a
medical plan, including dental and vision
expenses.
Money that works for you — Balances over a
certain amount may be invested.
Empowerment — Take control of your health
care decisions, including which providers you
want to use, to ensure your health care dollars
are spent wisely.