Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax favored account used in conjunction with an HSA-compatible health plan such as the Hackensack Meridian Health Basic Plan. The funds in the account are used to pay for IRS-qualified medical expenses such as services applied to the deductible, dental, vision, and more.
The advantages of an HSA include:
- HSA funds roll over from year-to-year
- There are tax benefits on contributions, earnings and distributions
- Long-term investment opportunities are available.
Due to an HSA’s potential tax savings, federal tax law includes strict rules for HSA contributions. Each year, the IRS sets limits for how much money team members can contribute to their tax-advantaged HSAs, based on whether they have single or family coverage. Here are the contribution limits for 2020.
2021 HSA Employer Contribution Limits
How much HMH contributes to your HSA
| Team Member | Team Member + Spouse | Team Member + Child(ren) | Team Member + Family | |
|---|---|---|---|---|
| Under $40K | $570 | $1,140 | $1,000 | $1,570 |
| $40K – $60K | $410 | $810 | $710 | $1,120 |
| $60K – $120K | $70 | $130 | $110 | $180 |
| Over $120K | N/A | N/A | N/A | N/A |
Part-time team members are not eligible for employer contributions to HSA
2021 IRS Maximum Allowable Contribution Limits
The total yearly maximum allowed for your FSA
Age 55 Catch Up Contribution
As in 401(k) and IRA contributions, you are allowed to contribute extra if you are above a certain age. If you are age 55 or older by the end of the year, you can contribute the additional $1,000 in his or her own name. If only the husband is 55 or older and the wife contributes the full family contribution limit to the HSA in her name, the husband has to open a separate account for the additional $1,000. If both husband and wife are age 55 or older, they must have two HSA accounts if they want to contribute the maximum. There is no way to hit the maximum with only one account.