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FOCUS ON BENEFITS 2020

Goodwill-Easter Seals Minnesota

HEALTH SAVINGS ACCOUNT
TOP REASONS TO
A Health Savings Account (HSA) is a tax favored savings account HAVE AN HSA

allowing you to save pre-tax dollars in addition to receiving GESMN
Tax Saving & Earned Interest — Contributions
contributions to help pay for medical related expenses.
are tax-deductible and earn tax-free interest.
GESMN will contribute towards your HSA for 2020, if you are enrolled
Portability — You own your account, so even if
in a GESMN medical plan; you are eligible for an HSA, and you have you change jobs, your HSA funds are yours to
established your HSA account with Associated Bank. Please note, you keep.
will not receive your HSA contribution until you open your account. Affordable Health Coverage — Use the HSA to

GESMN’s contributions for 2020 remain at: cover 100% of out-of-pocket costs for routine
medical expenses, such as office visits, lab tests,
$500 Employee only medical coverage = $19.23 per pay
and prescription medications.
$1,000 Employee + 1 or more medical coverage = $38.46 per pay
Long-Term Savings — Contributions to your
HSA accumulate and roll over year-to-year with
2020 IRS limits to your HSA: no limit, which allows the account to grow tax-
deferred.
• $3,550/single or $7,100/family (employer and employee
Retirement Bonus — After age 65, funds may
contributions combined).
be withdrawn for any reason with no penalties.
• Age 55 and older may contribute an additional contribution (If used for non-medical purposes, however,

annually of up to $1,000. taxes will be imposed.)
Safety Net — AN HSA has no “use it or lose it”
restrictions, so balances can be built up to use
Additional HSA information:
for major medical events.
• It is not required for employees to contribute their own HSA
Coverage for the “Extras” — HSA funds may be
monies to receive the GESMN HSA employer contribution. used to pay for services often not covered by a
• HSA accounts are not available to employees who are eligible for a medical plan, including dental and vision
expenses.
spouse’s medical flexible spending Account (FSA), unless the
spouse’s medical FSA is a limited medical FSA. This also includes Money that Works for You — Balances over a

GESMN Flexible Spending Accounts. certain amount may be invested.
• If you are covered on the High Deductible Health Plan (HDHP), but Empowerment — Take control of your health
care decisions, including which providers you
you are also covered on another group health plan (such as your
want to use, to ensure your health care dollars
spouse’s group plan) that is not an HDHP, you would also be are spent wisely.
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.
• 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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