Page 11 - CC 2018 Benefits Booklet_revised

2018 EMPLOYEE BENEFITS GUIDE
HEALTH SAVINGS ACCOUNT

Health savings accounts (HSAs) are tax advantaged bank
TO BE ELIGIBLE FOR AN HSA,
THE FOLLOWING MUST BE TRUE. accounts. If you enroll in Columbia College’s HDHP medical
1. You must have coverage under plan, you will be eligible to open an HSA. The contributions
Columbia College’s HDHP you make to HSAs are not subject to federal income, social
qualified plan. security, Medicare, and most state income tax. The earnings
2. You cannot have coverage under on the account are tax free. In addition, withdrawals can
a non-qualified plan, including be made from HSAs on a tax-free basis as long as they are
traditional, non-HDHP family used for qualified health expenses. If you enroll in the HSA
coverage through your spouse plan and meet all eligibility requirements set by the IRS, you
or a traditional health flexible may contribute to an HSA account.
spending account (either through Note: employees who sign up for the HDHP must take action and
Columbia College or through open up a health savings account.
your spouse’s employer). For
example, you cannot open and Contributing to Your HSA
contribute money to an HSA if When you enroll in the HDHP and you open a health
you are contributing money to the savings account, you can make pre-tax contributions to
traditional health flexible spending your HSA through payroll deductions. It’s your choice to
account (FSA). contribute or not. The IRS limits the amount of pre-tax
3. You cannot be claimed as a dollars you can contribute to your HSA each year. For 2018,
dependent on another person’s you can contribute up to $3,450 for single coverage and
tax return $6,850 for family coverage. If you enroll mid-year, you still
4. If you are enrolled in Medicare or can contribute the total allowable amount for that year;
Tricare see page 4 for HRA [Health however, to take advantage of the tax savings, you must:
Reimbursement Option]
5. You cannot have received VA • Stay enrolled in a qualifying high-deductible health plan for
Medical benefits within the last the following 12 months.
three months • Not have other health care coverage that would make you
ineligible to contribute to an HSA.

How much can I contribute? As noted by federal law, the annual contributions limits are:

Type of Coverage 2018 Employer 2018 Employee Voluntary 2018 Maximum
Annual Contribution Maximum Annual Contribution Annual Contribution

Employee Only (EE) $1,000 $2,450 $3,450
EE + Spouse $1,000 $5,850 $6,850

EE + Child(ren) $1,000 $5,850 $6,850

Family $1,000 $5,850 $6,850
Individuals aged 55 or older may be eligible to make a catch up contribution of $1,000 in 2018
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