Page 13 - CC 2017 Benefits Booklet

2017 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
plan, you will be eligible to open an HSA. The contributions
1. You must have coverage under a you make to HSAs are not subject to federal income, social

qualified plan such as Columbia security, Medicare, and most state income tax. The earnings
College’s HDHP on the account are tax free. In addition, withdrawals can
2. You cannot have coverage under be made from HSAs on a tax-free basis as long as they are
a non-qualified plan, including used for qualified health expenses. If you enroll in the HSA
traditional, non-HDHP family plan and meet all eligibility requirements set by the IRS, you
coverage through your spouse may contribute to an HSA account.
or a traditional health flexible Note: employees who sign up for the HDHP must take action and

spending account (either through open up a health savings account.
Columbia College or through
your spouse’s employer). For Contributing to Your HSA
example, you cannot open and When you enroll in the HDHP and you open a health
contribute money to an HSA if savings account, you can make pre-tax contributions to
you are contributing money to the your HSA through payroll deductions. It’s your choice to
traditional health flexible spending contribute or not. The IRS limits the amount of pre-tax
account (FSA). dollars you can contribute to your HSA each year. For
3. You cannot be claimed as a 2017, you can contribute up to $3,400 for single coverage

dependent on another person’s and $6,750 for family coverage. If you enroll mid-year, you
tax return still can contribute the total allowable amount for that year;
4. You cannot be enrolled in however, to take advantage of the tax savings, you must:
Medicare, Medicaid or Tricare • Stay enrolled in a qualifying high-deductible health plan for
5. You cannot have received VA the following 12 months.
Medical benefits within the last • Not have other health care coverage that would make you
three months
ineligible to contribute to an HSA.

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

Type of Coverage 2017 Employer 2017 Employee Voluntary 2017 Maximum
Annual Contribution Maximum Annual Contribution Annual Contribution

Employee Only (EE) $1,000 $2,400 $3,400
EE + Spouse $1,000 $5,750 $6,750

EE + Child(ren) $1,000 $5,750 $6,750

Family $1,000 $5,750 $6,750
Individuals aged 55 or older may be eligible to make a catch up contribution of $1,000 in 2017
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