Page 20 - Tacony 2021 Annual Benefits
P. 20
What are Some Key Considerations Contributions
Regarding HSA Contributions? How Much May I Contribute?
All contributions made from all sources to your account The annual contribution amount is determined by your
during the year apply toward your annual limit (e.g., if the coverage type. The annual limits for 2021 (including
company or someone else makes a contribution to your
account, this decreases the amount you may contribute to employer and employee contributions) are:
the account).
$3,550 single coverage
Family Contribution Limit $7,100 family coverage (the total sum for the entire
Whereas eligibility rules apply to the account holder only, family may not exceed this amount)
the family contribution limit applies to the whole family
regardless of who has qualiied coverage. If both you In addition, if you are or your spouse is between the
and your spouse are covered under an HSA-qualiied ages of 55 and 65, you may each be eligible for a catch-
health plan and either you or your spouse also has family up contribution above the annual limit. The catch-up
coverage in an HSA-qualiied plan (perhaps through the
spouse’s employer), you and your spouse would be limited limit is $1,000.
to contributing a combined sum to any HSA up to the
annual family contribution maximum (split evenly unless Annual Contribution Requirements
you mutually agree otherwise). Even if both of you have
separate family coverage which qualiies each of you for an There are limitations if you are not eligible for the full
HSA, the combined sum you and your spouse contribute year—for example if your coverage was from January 1
may not exceed the IRS annual family statutory maximum.
until May 15.
To contribute the full annual HSA maximum, you must
meet all of the HSA eligibility requirements and be:
1. Enrolled in a qualiied plan for the full year
(an effective plan date of January 1 through
December 1),
OR
2. Enrolled in the plan by December 1 of the tax year
and also remain HSA eligible through December 31
of the following year.
If you do not meet one of these conditions, the annual
amount you may contribute must be prorated (see key
considerations) or penalties will apply.
The IRS assesses a penalty for any amounts contributed
to the account above the permitted annual contribution
limit. You have until April 15 of the following tax year
to remove these funds (and pay applicable taxes) to
avoid this penalty.
20 2021 Benefits Enrollment
Regarding HSA Contributions? How Much May I Contribute?
All contributions made from all sources to your account The annual contribution amount is determined by your
during the year apply toward your annual limit (e.g., if the coverage type. The annual limits for 2021 (including
company or someone else makes a contribution to your
account, this decreases the amount you may contribute to employer and employee contributions) are:
the account).
$3,550 single coverage
Family Contribution Limit $7,100 family coverage (the total sum for the entire
Whereas eligibility rules apply to the account holder only, family may not exceed this amount)
the family contribution limit applies to the whole family
regardless of who has qualiied coverage. If both you In addition, if you are or your spouse is between the
and your spouse are covered under an HSA-qualiied ages of 55 and 65, you may each be eligible for a catch-
health plan and either you or your spouse also has family up contribution above the annual limit. The catch-up
coverage in an HSA-qualiied plan (perhaps through the
spouse’s employer), you and your spouse would be limited limit is $1,000.
to contributing a combined sum to any HSA up to the
annual family contribution maximum (split evenly unless Annual Contribution Requirements
you mutually agree otherwise). Even if both of you have
separate family coverage which qualiies each of you for an There are limitations if you are not eligible for the full
HSA, the combined sum you and your spouse contribute year—for example if your coverage was from January 1
may not exceed the IRS annual family statutory maximum.
until May 15.
To contribute the full annual HSA maximum, you must
meet all of the HSA eligibility requirements and be:
1. Enrolled in a qualiied plan for the full year
(an effective plan date of January 1 through
December 1),
OR
2. Enrolled in the plan by December 1 of the tax year
and also remain HSA eligible through December 31
of the following year.
If you do not meet one of these conditions, the annual
amount you may contribute must be prorated (see key
considerations) or penalties will apply.
The IRS assesses a penalty for any amounts contributed
to the account above the permitted annual contribution
limit. You have until April 15 of the following tax year
to remove these funds (and pay applicable taxes) to
avoid this penalty.
20 2021 Benefits Enrollment
