Health Savings Account (HSA Checking)

Health Savings Account (HSA Checking)


 

A Heritage Valley Health Savings (HSA) Checking Account can help you manage your health care costs. Deposits can be used to pay for medical expenses such as transportation to doctor visits, prescriptions and vision care. Any adult who is covered by a high-deductible health plan and has no other first dollar coverage may establish an HSA. Examples of first dollar coverage are: Medicare, Tricare Coverage, Flexible Spending Arrangements and Health Reimbursement Arrangements. 
 

Benefits & Features

  • Account pays dividends and money is tax-deferred

  • Funds roll over from year to year and you get back what you don't spend

  • Debit Card available for HSA owner and an authorized user

  • No administrative fees

  • No minimum balance requirements or per check charge

  • Monthly statements

  • Payroll Deduction & Direct Deposit

  • FREE Bill Payer

How Can I Make Contributions?

  1. The individual or family can make tax deductible contributions to the HSA even if they do not itemize deductions.

  2. The individual's employer can make contributions that are not taxed to either the employer or the employee.

  3. Employers sponsoring cafeteria plans can allow employees to contribute pre-taxed salary through salary deduction.

Who is an HSA Ideal For?

  • Self employed

  • Not enrolled in Medicare

  • Not claimed as a dependent on another's tax returns

  • Not covered by any low deductible health plan

  • Covered under a high deductible health plan (HDHP)

High Deductible Health Plan Limits

High Deductible Health Plan Limits
(Note: These limits are revised each year to reflect cost-of-living increases)
Annual Deductible Individual Family
2017 $1,300 $2,600
2018 $1,350 $2,700
Annual Deductible
Added to out-of-pocket expenses may not exceed
2017 $6,550 $13,100
2018 $6,650
$13,300

How Much Can I Contribute? 

Health Savings Account Contribution Limits
(Note: These limits are revised each year to reflect cost-of-living increases)
Annual Contribution Limit Individual
whichever is less
Family
whichever is less
The Annual Plan or Deductible or The Annual Plan or Deductible or
2017 $3,400 $6,750
2018
$3,450 $6,900

 For Employers

Benefits of Offering HSAs to Your Employees

  • Reduced Premiums - you can reduce your insurance premiums substantially by switching to an HSA-qualified high-deductible health plan.

  • Deliver more Benefit Dollars to Employees - Instead of paying 100% of insurance dollars to a carrier, you can deliver some of those dollars directly to employees by funding the account.

  • Provide Incentives to Employees to Get Involved with Healthcare Decisions - By re-allocating insurance premium dollars to individual accounts, individuals have incentives to get involved with the process and get the biggest bang for their buck.

  • Tax savings - Your contributions to the HSA are made with pre-tax dollars.

  • Better control of costs for healthcare benefits

  • Both employers and employees permitted to make HSA contributions

  • Requires less administration for employer than Flexible Savings Account since employee’s control and manages their own accounts 

Employee Enrollment

Our easy online account opening process means less paperwork for you AND your employees!

Download our "HSA Education & Enrollment Packet" below to learn how:

HSA Education & Enrollment Packet

Or for more information contact:
Sabrina Jianniney
(717) 840-4981 ext. 233
sjianniney@heritagevalleyfcu.org 

Tax Time Information

  • Your employees will receive Form 1099 SA for their yearly distribution total and Form 5498 SA for their yearly contribution total. These figures are reported to the IRS and are required to be reported on IRS Form 8889 when filing federal taxes. Employees should see IRS Publication 969 or consult their tax advisor for further information.

  • Your employees may make contributions to their HSA for the previous calendar year up to the tax filing deadline, which is normally April 15th. On their deposit, be sure they indicate that the contribution is for the previous calendar year to ensure correct processing.

Insurance Coverage Changes

  • If the employee starts an HSA‐qualified health plan mid‐year, they may contribute the full annual maximum to their HSA. However, a testing rule applies to those that start a HDHP any time other than January 1st. Per the IRS, they must remain an HSA‐eligible individual through December 31st of the next calendar year. If they’re not sure they’ll remain on the plan, they may want to pro‐rate their contribution amount in order to avoid having the excess added to their gross income and an additional 10% tax on that amount.

  • If your employee's insurance coverage changes from individual to family mid‐year, they’re eligible for the full family contribution limit for that calendar year.

  • If your employee's insurance coverage changes from family to individual mid-year, their contribution limit will need to be pro-rated according to how many months they were on each type of insurance coverage.