Page 8 - Benefits Guide BICS 2020 Final

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) BICS 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 may be subject to state taxes.

Fixed Salary Amount Employee Employee +
1 Enroll in the PPO HDHP for Medical coverage and Only Sp/Ch/Fam
establish your HSA bank account. (NOTE: You cannot be
covered under any other medical plan aside from your Under $60,000 $750 each $1,500 each
PPO HDHP, in order to qualify to open an HSA). semester semester
up to $1,500 up to $3,000
2  BICS will make contributions each semester into Under $80,000 $562.50 each $1,125 each
your HSA account as outlined in Chart A.
 In addition to BICS’ contribution, you may elect to semester semester
up to $1,125 up to $2,250
make contributions up to IRS maximums (see chart
B). Above $80,000 $375 each $750 each
 For employees 55+ years of age, the IRS permits an semester semester
additional catch-up contribution of $1,000 per year. up to $750 up to $1,500
NOTE: If you terminate employment with BICS mid-year,
Contributions will be taken out before federal income contributions from the company will stop and you will not
taxes are applied but contributions are subject to receive the full annual amount listed above.
California and New Jersey state taxes.
(B) IRS HSA Contribution Limits for 2020
3 The money in your HSA is yours to save and spend on Health Savings Account Employee Employee +
Only
eligible health care expenses whenever you need it.
(HSA)
Family
Your account balance earns interest and the unused
BICS Contribution: under 60k $1,500 $3,000
balance rolls over from year to year. The money is yours
Employee Maximum* $2,050 $4,100
to keep even if you leave BICS, no longer participate in a
HDHP, or retire. You may also contribute to the Limited BICS Contribution: under 80k $1,125 $2,250
Health Care FSA if needed. Employee Maximum* $2,425 $4,850
$750
4 If you end your employment with BICS, you can BICS Contribution: over 80k $2,800 $1,500
$5,600
Employee Maximum*
continue contributing to your HSA only if you continue
participating in an HSA-compatible health plan (HDHP). Total Annual HSA Max $3,550 $7,100
If you leave during the year and do not enroll in another
HSA-compatible plan, the annual contribution maximum *If you are at least 55 years old, you may contribute
is prorated based on the number of months you were an additional $1,000 into your HSA.
enrolled. If you fund your account for the entire year Eligible expenses include:
then leave the plan, you will need to withdraw excess • Medical, dental, and vision expenses, such as copays,
contribution dollars before the end of the tax year and coinsurance and deductibles.
treat these funds as taxable income. If you have over • Premiums for COBRA, Long Term Care, and Medicare.
funded the account, you may face tax penalties. • A full list of eligible expenses can be found at www.irs.gov.
Ineligible expenses include:
• 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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