Health Savings Account
View 2016-2017 Plan Details Here.
Health Savings Accounts are available to Plan H members only. Employees enrolled in Medicare or listed as a dependent on another person's tax return are not eligible for Health Savings Accounts.
HSAs resemble individual retirement accounts, except the money is earmarked for healthcare expenses. The IRS announces the maximum amounts permitted for deposit each year.
- Your deposits are tax-free and your money grows, year after year, tax-free until you use it.
- You own the account and decide how to invest and grow your money -- even when you leave or retire.
- You can withdraw funds anytime for medical expenses, including deductibles, copays and coinsurance.
- At age 65 or after, you can withdraw funds without penalty and use them for whatever you want.
- Funds withdrawn for non-medical expenses are subject to taxes and penalties.
- You receive triple tax advantages: contributions are deposited tax free, earnings accumulate tax-deferred and withdrawals for eligible expenses are not subject to federal income tax.
- Unused funds remain in the account and roll over from year to year.
- The maximum contributions for this plan year are:
- $3,350 for Single
- $6,650 for Employee plus Spouse or Child and Family.You may also open a Limited Flexible Healthcare Spending Account for dental and vision expenses only. This account is administered through DBI.
- Employees selecting the Health Savings Account for the first time will receive additional instructions to establish their account.
- Employees who activate their health savings account within 90 days after the effective date are eligible for a University contribution of:
- $450 per year for Single subscribers
- $550 per year for Employee plus Spouse or Child subscribers
- $650 per year for Family subscribers.