Page 8 - Benefits Guide TeleSign 2020

Health Savings Account (HSA)

Enroll in the HSA TIP: Review the Health Equity Website for
Maximize Your Tax-Free Earning Potential additional information.

A Health Savings Account (HSA) is like a personal, tax-free (A) TeleSign Annual HSA Contribution Chart
savings account for qualified health care expenses that earns Please note employee and employer
interest. Here’s an overview of how it works: contributions are subject to CA state taxes

Month enrolled in HDHP Employee Employee +
Enroll in the PPO HDHP for Medical coverage and
1 establish your HSA bank account. (NOTE: You cannot be Medical Only Sp/Ch/Fam
covered under any other medical plan aside from your January $750 $1,500
PPO HDHP, in order to qualify to open an HSA). February $687.50 $1,375

March $625 $1,250
2  TeleSign will make contributions each pay period April $562.50 $1,125
into your HSA account ($31.25 per employee and
$500
May
$1,000
$62.50 per family). See chart A to determine your June $437.50 $875
annual amount depending on your enrollment date. July $375 $750
 In addition to TeleSign’s contribution, you may elect August $312.50 $625
to make contributions up to IRS maximums (see September $250 $500
chart B). October $187.50 $375
 For employees 55+ years of age, the IRS permits an November $125 $250
additional catch-up contribution of $1,000 per year. December $62.50 $125

NOTE: If you terminate employment with TeleSign mid-year,
Contributions will be taken out before federal income
taxes are applied but contributions are subject to contributions from the company will stop and you will not
California state taxes. receive the full annual amount listed above.

(B) IRS HSA Contribution Limits for 2020
3 The money in your HSA is yours to save and spend on Maximum HSA Employee Employee +
eligible health care expenses whenever you need it.
Your account balance earns interest and the unused Contributions Only Family
balance rolls over from year to year. The money is yours
to keep even if you leave TeleSign, no longer participate TeleSign Contribution $750 $1,500
in a HDHP, or retire. You may also contribute to the Employee Contribution $2,800 $5,600
Limited Health Care FSA if needed.
Total Annual HSA $3,550 $7,100
*If you are at least 55 years old, you may contribute
4 If you end your employment with TeleSign, you can an additional $1,000 into your HSA.
continue contributing to your HSA only if you continue
participating in an HSA-compatible health plan (HDHP). Eligible expenses include:
If you leave during the year and do not enroll in another • Medical, dental, and vision expenses, such as copays,
HSA-compatible plan, the annual contribution maximum coinsurance and deductibles.
is prorated based on the number of months you were • Premiums for COBRA, Long Term Care, and Medicare
enrolled. If you fund your account for the entire year plans.
then leave the plan, you will need to withdraw excess • A full list of eligible expenses can be found at www.irs.gov.
contribution dollars before the end of the tax year and
treat these funds as taxable income. If you have over Ineligible expenses include:
funded the account, you may face tax penalties. • Expenses that are not medical or health related.
• Cosmetic surgery.

Educational Video
Choosing the right health plan is important. Go to the link below to watch a quick video to learn why
a High Deductible Health Plan with a Health Savings Account might be right for you.

High Deductible Health Plans and Health Savings Accounts:
http://video.burnhambenefits.com/hdhp/

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