A Health Savings Account (HSA) is an individually-owned, tax-advantaged savings account. You may use HSA funds to pay for medical, dental, prescription and vision expenses. When contributing money to your HSA via payroll, your contributions are tax-free at time of deposit.
The HSA program is administered by Health Equity.
- HSAs offer a triple tax advantage by making the following tax free:
- Investment Earnings
- You decide how much you want to contribute and the money in your account rolls over from year to year.
- The HSA money is yours to keep-you can take it with you if you leave the university and/or use it during retirement.
IRS Eligibility Rules
In order to be eligible to contribute to an HSA:
- You must be covered by a qualifying High Deductible Health Plan (HDHP) - like the HSA-Advantage HDHP or MESSA ABC Saver.
- You can't also be covered by any other non-HDHP plan, even if the coverage is secondary. Examples:
- You can't have other coverage on your spouse's traditional PPO or HMO plan.
- You can't be enrolled in any Medicare or TRICARE.
- You can't be eligible for VA benefits and have received health benefits from the VA within the last 3 months unless for a service-connected disability.
- You can't be claimed as a dependent on someone else's tax return (other than your spouse).
- You or your spouse can't be enrolled in a general purpose (or traditional) Health Flexible Spending Account (FSA) or Health Reimbursement Account (HRA).
Important Reminder: If you are already enrolled in Medicare, you are not eligible to enroll in a HSA, per the IRS. Medicare eligibility usually begins at age 65 and you can be retroactively enrolled in Medicare Part A, unless you can postpone your Medicare enrollment. Medicare Part A is mandatory for those who receive Social Security income. Check with the Social Security office to determine your eligibility to postpone Medicare enrollment.
Forms & Resources
Medicare and HSAs