WEX
A health savings account (HSA) is a tax-advantaged savings vehicle that allows you to pay for qualified expenses today, such as medical, dental or vision care—and save for the future.
HSA Eligibility
In order to participate in an HSA, you:
- Must be enrolled in the CDHP
- Cannot simultaneously participate in the company’s health care FSA
- Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare
- Cannot be claimed as a dependent on someone else’s tax return
Have questions?
Click on the button below for important plans and documents related to the HSA.
How the HSA Works
Tax-free money goes in:
- You receive an annual company contribution of $500 (individual coverage) or $1,000 (family coverage).
- In addition, you have the option to make personal pre-tax contributions up to the annual IRS limit through payroll deductions or external payment directly into your account.
- $4,150 for individual coverage
- $8,300 for family coverage
- Individuals ages 55 and up can make an additional catch-up contribution of $1,000
- Your personal contributions + the company’s annual contribution cannot exceed the annual IRS limits.
Your balance grows tax free:
- HSA funds roll over from year to year and are yours to keep, even if you change medical plans or leave the company.
- Your balance earns interest and can be invested once it reaches $1,000 to grow your balance even further.
Tax-free money comes out:
- You can withdraw funds tax free to pay for eligible health care expenses, such as doctor’s office visits, prescriptions, over-the-counter drugs and much more. Refer to IRS Publication 969 for a complete list of eligible expenses.
Tax-free savings for the future:
- You can choose to save funds for future eligible health care expenses—even in retirement.
Did you know?
To receive the company HSA contribution, you must be enrolled in the CDHP on January 1. As a reminder, an associate may not be enrolled simultaneously in the company’s HCFSA and the HSA. It is permissible to be enrolled in the dependent care FSA and the HSA concurrently.
Example of Tax Savings Under the HSA
Steve is a single man who anticipates spending $750 a year in medical expenses.
Without an HSA | |
---|---|
Steve’s annual earnings | $30,000 |
Steve pays his taxes | $6,795* |
What is left after taxes | $23,205 |
Steve pays his medical expenses | $750 |
Spendable income | $22,455 |
Here’s the same situation, but this time Steve uses his HSA to set aside money to pay for his medical expenses before he pays his taxes.
With an HSA | |
---|---|
Steve’s annual earnings | $30,000 |
HSA contribution (additional $500 in HSA from company contribution for medical expenses) |
$250 |
Steve’s adjusted income | $29,750 |
Steve pays his taxes | $6,738* |
Spendable income | $23,012 |
*Tax rate equals 22.65% (15% federal and 7.65% Social Security)
Steve contributes $10.41 to his HSA each pay period. By the end of the year, he will have contributed $250. Combined with the $500 company contribution, Steve uses his HSA benefits card for his medical expenses totaling $750. When Steve uses his HSA, he pays $57 less in taxes and will have an additional $557 in spendable income for the year.
Eligible Expenses
For a list of eligible expenses, click here.