Page 8 - 2015 NISC Open Enrollment
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Health Savings Account
(HSA)
Health Savings Account (HSA)
Preventive care is
covered at 100% The second part of the Consumer Driven Health Plan is the HSA, a tax-
favored savings account for qualiied health expenses. Below is a summary
of key features of the HSA:
z Contributions made by both you and NISC are exempt from income and
social security taxes
Qualifying Medical
Expense z HSA deposits will be made on a monthly basis on the irst payroll date
HSA funds may be withdrawn of each month
without tax or penalty if used for z Employee owns and manages the account
qualiied medical expenses.
z Remaining balances accumulate from year to year
z Qualiied Medical Expenses z
from IRS Section 213 (this is the Balances over $2,500 may be invested with tax-free growth
same list used for qualiied z You can change your contribution at any time during the year
FSA expenses)
z HSA withdrawals for qualiied medical expenses are tax-free (all other
z Or reference IRS Publication withdrawals are subject to tax and a 20% penalty)
502, “Medical and Dental
Expenses” HSA Contributions
Employee Employee +1 Family
NISC HSA Contribution $1,200 $1,200 $1,200
HSA Contribution Max * $3,350 $6,650 $6,650
* Employees age 55 or older prior to December 31 may contribute an additional $1,000 annually
as a catch-up contribution
Eligibility for HSA Contribution
z Must elect NISC health coverage
z Generally you cannot be covered under any other health insurance plan,
healthcare lexible spending account (FSA), Medicare part A or B, and
you cannot be claimed as a dependent on another person’s tax return
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(HSA)
Health Savings Account (HSA)
Preventive care is
covered at 100% The second part of the Consumer Driven Health Plan is the HSA, a tax-
favored savings account for qualiied health expenses. Below is a summary
of key features of the HSA:
z Contributions made by both you and NISC are exempt from income and
social security taxes
Qualifying Medical
Expense z HSA deposits will be made on a monthly basis on the irst payroll date
HSA funds may be withdrawn of each month
without tax or penalty if used for z Employee owns and manages the account
qualiied medical expenses.
z Remaining balances accumulate from year to year
z Qualiied Medical Expenses z
from IRS Section 213 (this is the Balances over $2,500 may be invested with tax-free growth
same list used for qualiied z You can change your contribution at any time during the year
FSA expenses)
z HSA withdrawals for qualiied medical expenses are tax-free (all other
z Or reference IRS Publication withdrawals are subject to tax and a 20% penalty)
502, “Medical and Dental
Expenses” HSA Contributions
Employee Employee +1 Family
NISC HSA Contribution $1,200 $1,200 $1,200
HSA Contribution Max * $3,350 $6,650 $6,650
* Employees age 55 or older prior to December 31 may contribute an additional $1,000 annually
as a catch-up contribution
Eligibility for HSA Contribution
z Must elect NISC health coverage
z Generally you cannot be covered under any other health insurance plan,
healthcare lexible spending account (FSA), Medicare part A or B, and
you cannot be claimed as a dependent on another person’s tax return
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