Health Savings Account (HSA)
When you enroll in the High Deductible Health Plan (HDHP) medical insurance option, you will also have the opportunity to contribute to a Health Savings Account (HSA). A HSA is a special tax-advantaged savings account similar to a traditional Individual Retirement Account (IRA) but designated for medical expenses. A HSA allows you to pay for current covered health care expenses and save for future qualified medical and retiree health care expenses on a tax-favored basis. Please note that Internal Revenue Service rules govern the accounts and include certain eligibility requirements for making contributions as well as limits on the amount of contributions that can be made each tax year.
The university makes available a HSA option to which employees can contribute on a pre-tax basis via payroll deduction. BNY Mellon services the accounts; please visit the website mybenefitwallet.com to learn more. HDHP participants may open a HSA with any financial institution, however at this time BNY Mellon is the only bank to which pre-tax payroll deduction contributions are currently supported.In 2014 the IRS limits on HSA contributions are:
- Employee only HDHP coverage - $3,300
- Family HDHP coverage - $6,550
Individuals age 55 and older may be eligible to contribute up to an additional $1,000. The IRS defines “family” coverage as qualifying HDHP insurance that covers an employee and at least one dependent.
You can make changes to the amount you contribute to your HSA during the year by submitting a new Health Savings Account Change of Contribution form (pdf).
More information about HSAs is available by navigating through the above sections. Internal Revenue Service guidance on HSAs is available in IRS Publication 969 . BNY Mellon has a list of HSA Frequently Asked Questions too. Please contact Benefits Administration at 368.6781 or email@example.com if you have questions or need assistance.