Page 11 - 2016 Open Enrollment
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What is a Health Savings Account (HSA)?
When an associate participates in a qualiied CDHP (and is not covered
by another non-CDHP medical plan), associates are eligible to participate
in a Health Savings Account (HSA). An HSA allows associates to pay
for qualiied medical expenses under a CDHP with pre-tax dollars,
thus reducing taxable income. Associates can make contributions to
the account up to the allowed maximum contribution limits. The IRS
contribution limits for 2016 are $3,350 for individuals and $6,750 for
families. Individuals age 55 and older may contribute an additional
$1,000 to the HSA under the “catch-up” provision. These funds can be
withdrawn at any time to cover qualiied medical expenses as deined by
the IRS, such as deductibles, medical services, pharmacy charges or post
retirement medical expenses, for example. Contributions made to the
account will automatically roll over year after year.
When you participate in an HSA, you are not eligible for the
Healthcare FSA. If you are currently enrolled in a Healthcare FSA,
you cannot contribute to an HSA until you are no longer enrolled
in a Healthcare FSA, unless you elect to participate in a Limited
Health FSA (dental and vision only).
In addition, you may not contribute to an HSA while your spouse
is contributing to a Healthcare FSA through his or her employer.
Conversely, a spouse may not contribute to a Healthcare FSA while you
are contributing to an HSA. Unlike the Healthcare FSA, HSA funds are
not available until they have been accumulated in your HSA bank account.
Benefits Enrollment
What is a Health Savings Account (HSA)?
When an associate participates in a qualiied CDHP (and is not covered
by another non-CDHP medical plan), associates are eligible to participate
in a Health Savings Account (HSA). An HSA allows associates to pay
for qualiied medical expenses under a CDHP with pre-tax dollars,
thus reducing taxable income. Associates can make contributions to
the account up to the allowed maximum contribution limits. The IRS
contribution limits for 2016 are $3,350 for individuals and $6,750 for
families. Individuals age 55 and older may contribute an additional
$1,000 to the HSA under the “catch-up” provision. These funds can be
withdrawn at any time to cover qualiied medical expenses as deined by
the IRS, such as deductibles, medical services, pharmacy charges or post
retirement medical expenses, for example. Contributions made to the
account will automatically roll over year after year.
When you participate in an HSA, you are not eligible for the
Healthcare FSA. If you are currently enrolled in a Healthcare FSA,
you cannot contribute to an HSA until you are no longer enrolled
in a Healthcare FSA, unless you elect to participate in a Limited
Health FSA (dental and vision only).
In addition, you may not contribute to an HSA while your spouse
is contributing to a Healthcare FSA through his or her employer.
Conversely, a spouse may not contribute to a Healthcare FSA while you
are contributing to an HSA. Unlike the Healthcare FSA, HSA funds are
not available until they have been accumulated in your HSA bank account.
Benefits Enrollment
