What is an HSA?
An HSA is designed to work with a qualifying high-deductible health plan (HDHP). The money goes in tax-free, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses. You can carry over unused funds from year to year and the account is yours to keep even if you change jobs, change health plans or retire.
How an HSA works
The money goes into your HSA income tax-free on a payroll pretax basis, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses. The account is yours to keep even if you change jobs, change health plans or retire. Also, you can carry over unused funds from year to year.
To elect or change HSA contributions throughout the year, you can:
- Log into the enrollment portal at hrdirect.jll.com by clicking on the “Benefits” link, under “My Tech” in HR Direct then click on the “Increase Your HSA” icon on the home page.
- You can also call 866-580-7421.
Who is eligible to open an HSA?
To be eligible for an HSA, you must meet the following requirements, as defined by the IRS:
- You must be covered under a qualifying high-deductible health plan on the first day of the month.
- You have no other health coverage except what is permitted by the IRS.
- You can’t be claimed as a dependent on someone else’s tax return.
- You are not enrolled in Medicare, TRICARE or TRICARE for Life.
- You haven’t received Veterans Affairs benefits within the past three months, except for preventive care. If you have a disability rating from the VA, this exclusion doesn’t apply.
- You do not qualify for a medical flexible spending account if you are enrolled in the CDHP/HSA. You may, however, have a limited purpose FSA for vision and dental expenses only.
Other restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.