A Health Savings Account (HSA) is an individually-owned, tax-advantaged account that you can use to pay for current or future eligible medical expenses. With an HSA, you’ll have the potential to build more savings for health care expenses or additional retirement savings through self-directed investment options.
This benefit is only available to individuals enrolled in one of the It’s Your Choice (IYC) High Deductible Health Plans (HDHP). If you enroll in one of the IYC HDHPs, you are required to enroll in the HSA.
Money in your HSA is yours, even if you leave the HDHP plan or state service.
What are the benefits of an HSA?
Pre-tax contributions reduce your taxable income.
Post-tax contributions are tax deductible .
Make changes to your contribution at any time.
Distributions for eligible medical expenses are tax free.
HSA funds carry over year-to-year without forfeiture.
Contributions to your HSA belong to you, even if you retire or change employment.1
Grow your savings over time by earning interest.
- After age 65, your funds can be withdrawn for any purpose without penalty (subject to regular income taxes).
How does it work?
You can contribute to your HSA via payroll deduction or by online transfer from your personal bank account to your HSA. Your employer (if eligible for employer contribution) or third parties, such as a spouse or parent, may contribute to your account as well.
You can pay for eligible medical expenses with your payment card or pay out-of-pocket. If you pay out-of-pocket, you can either choose to reimburse yourself or keep the funds in your HSA to grow your savings.
- Manage your HSA Account 24/7 via the myCYC mobile app or CYC Online account.
1Employees that terminate employment but keep HSA open and active with ConnectYourCare will pay a monthly administrative service fee. Retirees enrolled in IYC HDHP/HSA benefit option are not required to pay the monthly administrative fee.
HSA Transfer of Asset
If you have an active HSA with TASC, you may want to consider transferring your asset of funds to ConnectYourCare.
You can transfer your TASC HSA to ConnectYourCare through an e-Consent (online) portal. You will have from September 30, 2019 - December 31, 2019 to sign up on the e-Consent portal. Any investment account will be liquidated when your HSA closed at Healthcare Bank and transferred to ConnectYourCare. Your HSA balance will be available in February 2020 with ConnectYourCare if you choose to transfer your funds.
If you want your HSA balance to remain with TASC, you must pay a monthly $3.00 administrative fee starting February 2020.
There are a number of requirements you must meet in order to be eligible for an HSA.Read More about HSA Eligibility
You and others (your employer, parents, spouse, etc) may contribute up to $3,550 (individual coverage) or $7,100 (family coverage) to your HSA for the 2020 plan year.
If eligible, your employer may add $750 (individual coverage) or $1,500 (family coverage) to your HSA. Your employer's contribution will be added in installments
Important HSA Program Information
You must incur all eligible expenses for the 2019 benefit period by December 31, 2019. For the 2020 benefit period, you must incur all eligible expenses by December 31, 2020. The HSA can only be used to pay for eligible medical expenses incurred after your HSA was established.
While you should always try to submit requests for distribution during the same plan year in which the expense was incurred, there is no deadline to request an HSA distribution.
All unused HSA funds carryover year-to-year without forfeiture.
HSA Eligible Expenses
An eligible expense is a health care service, treatment or item the IRS states can be paid for without taxes. Eligible expenses can be incurred by you, your spouse or qualified dependents. The HSA can only be used to pay for eligible medical expenses incurred after your HSA was established.Read More about HSA Eligible Expenses
HSA Investment Options
Your HSA dollars can grow over time, especially if you decide to compound your funds. The amount you save depends on how you choose to use your HSA funds.
Funds in your HSA account will earn interest over time. Once your balance reaches $1,000, you may invest any funds above that level (in any increments) in a variety of HSA investment options with varying levels of related risk and returns.
You will receive a welcome brochure and payment card from ConnectYourCare.