Health Savings Account Overview

A Health Savings Account allows you to contribute money in a tax-free account for present and future health care expenses. Because this account has certain tax advantages be aware of the following:

 

  • HSA Eligibility Rules

  • HSA Maximum Annual Contribution Amounts

  • Tax Information for HSA Participants

  • Managing Your Account

An HSA Stays With You

When you enroll in and contribute tax-free money into an HSA, your unused funds roll over from year to year.  Also, if you ever leave or retire from your job, your funds go with you.

HSA Eligibility Rules

Because these accounts have certain tax advantages, you must meet the following IRS requirements. 
  

To be eligible for an HSA:

  • You cannot be covered by any other health insurance except a high-deductible health plan (HDHP), such as the Consumer Choice PPO Plan.

  • You cannot be enrolled in Medicare.

  • You cannot be claimed as a dependent on someone else’s tax return.

A Three-Way Tax Advantage

  1. You can contribute to the account on a tax free basis — and receive monthly employer premium rebate credits. You decide when to spend or save your deposits.
  2. Your account earns interest right away — tax free!  When you have a minimum account balance of $1,000, you can choose to invest in a wide selection of mutual funds offered through PayFlex.
  3. When you withdraw your funds to pay for eligible health care expenses, the funds are typically tax free.

HSA Maximum Annual Contribution Amounts

The annual maximum HSA contribution allowed for 2017 is $3,400 for individual (employee only) and $6,750 for family coverage (all other coverage tiers). If you are 55 or older in 2017, you can contribute an additional $1,000 “catch-up” contribution.

Unused funds are not forfeited. Money not used in the account will roll forward from year to year.

 

Making Contributions to Your HSA

Your employer, you and your family members may make contributions to your HSA. Contributions can be made any time of the year in one or more payments.

  • You can contribute to your HSA with pre-tax dollars taken directly from your paycheck.
  • You may deposit contributions directly into the HSA.
  • Visit www.irs.gov (Publication 969 for more information regarding HSA contributions).

Changing Your HSA Contribution Amount

You can change the amount you contribute to your HSA at any time. Be sure to review your HSA contribution election amounts so you stay within the IRS regulated limits. Visit the IRS website for more information on HSA contribution limits at www.irs.gov (Publication 969). To make changes to your contributions log into Dayforce and submit the appropriate form.

  • For per pay period changes complete the HSA Election Change Form (located under Benefits > Overview).
  • For lump sum contributions complete the Consumer Choice HSA Lump Sum Contribution form (located under Benefits > Forms). If you are making a lump sum contribution, it is important to note the amount will be taken in addition to your regularly scheduled HSA contribution and elections must be received 8 days prior to check date.


Transfer Funds from Other HSA to Your PayFlex HSA

If you have an HSA at another institution, you can transfer your funds to your PayFlex HSA. Complete a PayFlex Transfer Request Form and mail it to PayFlex for processing. The transfer amount does not count toward your annual contribution limits.


Eligible Expenses

Visit the IRS website publication 969 and publication 502 for more information on eligible expenses under your Health Savings Plan.

Note: An expense may not be reimbursed from your HSA unless the expense was incurred to provide medical care for yourself, your spouse, or your tax dependent (and, of course, the other conditions for reimbursing an expense must also be satisfied). For example, although you are able to cover your 25 year old daughter under the Consumer Choice PPO option of the Medical Plan, unpaid medical expenses for her are not HSA eligible unless she is your dependent for federal tax purposes.

After reaching age 65, you can use HSA savings for any purpose (subject to normal income tax).


Turning Age 65

Your HSA Account You are not allowed to contribute (or receive employer contributions) to a Health Savings Account if you are enrolled in Medicare A and/or B.

  • If you receive a Medicare card, you are enrolled in Medicare Part A.
  • If you commence your Social Security Benefit you are automatically enrolled in Medicare Part A.

If you are age 65, enrolled in the Consumer Choice Plan and have Medicare A and/or B, contact Farm Credit Foundations at 1-800-892-7924.


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