$ 3,600 $ 7,200 $ 1,000
HEALTH SAVINGS ACCOUNT ( HSA )
Understanding your Health Savings Account
Exclusive to members on the City ’ s Value Plan ( previously HDHP ), an HSA is a separate bank account that you deposit money into , via a pre-tax payroll deduction , specifically for health care-related expenses . It comes with some great benefits , which include :
✓
✓ ✓ ✓
Tax deductions on contributions that you or anyone else makes to your HSA account Contributions roll-over from year-to-year Any interest or other earnings in your HSA are tax-free You can pull your money out tax free , if it is for qualified health expenses ( see IRS publication 969 )
How Much Can I Contribute ?
This is determined by the IRS each calendar year . For 2021 , the limits are below , based on plan selection , and you are responsible for assuring you do not exceed the annual limit .
$ 3,600 $ 7,200 $ 1,000
Value Plan Employee-Only
Value Plan Employee + 1 or more
Age 55 Catch-Up Additional Amount
Opening and contributing to your HSA Important Notes about HSA ’ s
1
Open
2 3 4 an account with Optum Bank , the City ’ s official HSA partner . Visit the Optum enrollment page to review eligibility requirements .
After opening your Optum account , elect the Value Plan as your medical option , then elect the HSA option in Lawson along with your contribution amount during enrollment .
Complete the HSA Payroll Direct Deposit Form using your Optum account information and submit to Human Resources .
That ’ s it ! Your contributions will begin the next pay period after completing steps 1 - 3 . ( See FSA Exclusion on right )
Medicare Exclusion : If you enroll in Medicare , you may not be eligible to make HSA contributions and may be penalized if you do . Consult with a tax professional for more information .
FSA Exclusion : If you are eligible to make a claim from any 2020 FSA health reimbursement account you may not contribute to an HSA until March 15 , 2021 .
FSA Limited Scope Provision : You may contribute to an HSA and FSA Limited Scope account in the same calendar year , however the FSA funds may only be used for Dental / Vision care expenses only .
Age 55 Catch-up Provision : Individuals age 55 and over or who will become age 55 any time in 2021 have the option to contribute an additional $ 1,000 under the catch-up provision established by the IRS .
City of Arlington / EMPLOYEE BENEFITS GUIDE 2021
18