Health Savings Account (HSA)

  • Available Plan B only.

    A Health Savings Account lets you set aside money to pay for future medical costs through your own tax-deferred contributions.

    • You may make pre-tax contributions through payroll deductions, which reduces the amount of taxable income.
      • For 2020, the maximum employee contribution is $3,550/individual and $7,100/family.
    • The FNSBSD will contribute up to $750 each year to your HSA, if you elect it.
    • The money stays in your account from year to year. It is yours to keep even after you leave FNSBSD. There is no deadline to use HSA contributions, so you can continue to save for a rainy day or to help pay for medical needs into your retirement years.
    • An HSA is similar to an individual retirement account (IRA) because it too can be invested in a variety of investment vehicles, while accumulating tax-free interest. The advantage of an HSA compared to an IRA is that the funds from an HSA are not taxed when they are withdrawn to pay for qualified medical expenses.

    You must elect this benefit annually.

    You may enroll in either the HSA or the Health Care FSA, but not both.

    You are eligible for an HSA if you're an individual who:

    • Is covered under a qualified high-deductible health plan (HDHP), such as Plan B;
    • Is not also covered by any other health plan that is not a qualified HDHP;
    • Is not enrolled in Medicare; and
    • May not be claimed as a dependent on another person’s tax return.

    If you don't meet all these criteria, you are not eligible to enroll in an HSA. You may elect a Health Care FSA. You may still elect Plan B.

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Last Modified on October 13, 2020