Health Savings Account (HSA)
A Health Savings Account (HSA) is a personal savings account you can use to pay for qualified out-of-pocket medical expenses with pretax dollars, now and in the future. Once you’re enrolled in the HSA, you’ll receive a debit card to help manage your HSA reimbursements. Your HSA can also be used for your expenses and those of your spouse and tax dependents, even if they are not covered by the HDHP medical plan.
Your HSA is always yours — no matter what.
One of the best features of an HSA is that any money left in your HSA account at the end of the year rolls over so you can use it next year or sometime in the future. And if you leave F5 or retire, your HSA goes with you so you can continue to pay for or save for future eligible healthcare expenses.
Advantages of The HSA
It’s your money in your account and doesn’t go away until you spend it.
- Triple Tax Advantage in most states*
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- Your money goes in tax free
- Your money grows tax free
- Your money comes out tax free when used for qualified health care expenses
- Balances of $500 or more can be invested
- When you reach IRS retirement age you can spend the money on anything you want and only pay ordinary income tax.
- Those participating in the HSA also have access to the Garner HRA once you have satisfied the IRS minimum deductibles. *CA and NJ – While HSA contributions and earnings are not subject to federal taxes, they are subject to state income tax. NH and TN – Dividend and interest earnings may be subject to an additional tax.
Eligibility
There are several requirements you must meet to be able to contribute to F5’s HSA.
- You must be enrolled in F5’s High Deductible Health Plan (HDHP).
- You cannot be enrolled in a medical plan that is not an HDHP, such as your spouse’s, partner’s, or parent’s PPO or HMO plan; nor can you be enrolled in Medicare, Medicaid, or Tricare. This restriction does not apply to your spouse or partner; they can be enrolled in any type of medical plan, and you can still contribute to F5’s HSA.
- You or your spouse cannot be enrolled in a health care FSA. This applies even if the annual election amount has been spent and the FSA balance is zero but contributions are still being made. There are no restrictions if you have a day care FSA.
- You cannot be a dependent on someone else’s tax return. This does not apply if you are listed as a spouse.
Contributions
F5 contributes: $750 (Employee Only) | $1,500 (Family)
You contribute on a pretax basis and can change how much you contribute from each paycheck up to the annual IRS maximum of $4,400 if you enroll only yourself or $8,750 if you enroll in family coverage. You can make an additional $1,000 catch-up contribution if you are age 55 or older.
Using Your Account
Eligible Expenses
You may use your HSA funds to cover medical, dental, vision and prescription drug expenses incurred by you and your eligible family members.
Your Debit Card
Use the debit card linked to your HSA to cover eligible expenses or pay for expenses out of your own pocket and save your HSA money for future healthcare expenses.
If Enrolling in Medicare
Enrollment in Medicare (including Part A and/or Part B) impacts your eligibility to contribute to a Health Savings Account (HSA). Under IRS rules, individuals enrolled in Medicare are not eligible to make or receive HSA contributions beginning on the effective date of their Medicare coverage.
Please note that Medicare Part A coverage may be retroactive for up to six (6) months (but not earlier than your initial Medicare eligibility date). As a result, to avoid potential tax penalties, you should discontinue HSA contributions at least six (6) months prior to enrolling in Medicare.
If HSA contributions are made while you are ineligible, you may be subject to IRS excise taxes and will need to correct any excess contributions.
You may continue to use your HSA balance after enrolling in Medicare for qualified medical expenses on a tax-free basis. HSA funds may be used to pay for Medicare Part B, Part D, and Medicare Advantage premiums, but not for Medigap (Medicare Supplement) premiums.