Health Savings Account

Benefit Overview

The Health Savings Account (HSA) lets employees enrolled in a high-deductible health plan (HDHP) save pre-tax dollars to pay for qualified medical expenses now or in the future. Funds in an HSA belong to the employee and roll over year after year—there’s no “use it or lose it.” It’s a flexible, tax-advantaged way to manage healthcare costs and plan for long-term wellness expenses.

Available to employees enrolled in a qualified High-Deductible Health Plan (HDHP). You cannot contribute to an HSA if you are enrolled in any non-HDHP medical plan, a general-purpose FSA, or are claimed as a dependent on another person’s tax return.

Key Details

For more information, please refer to the Documents section below.

How It Works

Once you’re enrolled in a qualifying HDHP, you can open an HSA with HealthEquity. You decide how much to contribute—either through payroll deductions or direct deposits. Contributions go in tax-free, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

How to Contribute

You can fund your HSA through automatic payroll deductions or make direct contributions online. To set it up, submit the Payroll Deduction Form during open enrollment or anytime during the year. Adjust your contribution amount anytime up to the IRS limit.

Using Your HSA

• Use your HealthEquity debit card to pay for eligible medical, dental, and vision expenses directly.
• Funds can be used for doctor visits, prescriptions, lab work, eyeglasses, dental care, and many over-the-counter items.
• Save your receipts—non-qualified withdrawals are taxed and may incur penalties before age 65.

Why This Benefit Matters

An HSA offers a rare triple tax advantage—money goes in tax-free, grows tax-free, and comes out tax-free for qualified expenses. Unlike FSA funds, your HSA balance rolls over each year and remains yours even if you change jobs or retire. Over time, it can also serve as a supplemental retirement savings tool.

Additional Information

• Enrollment in a qualified high-deductible health plan (HDHP) is required.
• If you are covered under an HDHP as of December 1, you are considered eligible for the full year under IRS rules.
• Employees age 55 or older can contribute an additional $1,000 annually.
• Exceeding IRS limits or losing HDHP eligibility may result in tax penalties.
• Questions about eligibility or contribution limits can be directed to HealthEquity Member Services.

Who This Benefit Is For

Employees enrolled in a high-deductible health plan who want to save on taxes and take control of healthcare spending. It’s ideal for those who prefer lower monthly premiums and want the flexibility to grow funds year over year for medical costs or retirement health expenses.

Documents