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How Is the HSA Funded?

*Currently, for residents of California and New Jersey, HSA contributions and earnings are not excluded from state income tax. For more information, please consult your tax advisor.
**View a full list of eligible expenses on the HealthEquity website or IRS Publication 502—Medical and Dental Expenses.

Your Contributions

You can contribute up to the IRS annual maximum through pre-tax payroll deductions. That means you don’t pay taxes on the money you contribute.* Your contributions are available to use as soon as they are deposited into your account.

Learn more about the advantages of contributing to your HSA.

You can start, change or stop your contributions at any time.

Age 55 or Older? You Can Contribute More

If you are age 55 or older (or will be by the end of the year), you can make an additional tax-free* "catch-up" contribution of $1,000 using the UPAY850 form (employees only). If you’re married, both you and your spouse can both contribute an extra $1,000. But you’ll each need your own HSA. For example, you can contribute up to $1,000 to your UC HSA, and your spouse can contribute an extra $1,000 to an HSA through his or her employer or you can open a separate HSA through a bank or other institution.

*Currently, for residents of California and New Jersey, HSA contributions and earnings are not excluded from state income tax. For more information, please consult your tax advisor.

UC's Contributions

When you enroll in the HSP, UC automatically opens an HSA on your behalf through UC’s HSA custodian, HealthEquity, and makes an annual contribution to your HSA.

UC contributes only once during the year based on the family members that are enrolled as of January 1. UC sends the full annual contribution to our HSA administrator, HealthEquity, on about the same date that you receive your first paycheck in January of each year. HSA funds are typically posted to accounts within five business days.

If your UC HSP coverage begins any time after January, UC’s annual HSA contribution for the year is prorated according to this schedule. (However, the HSP deductible is not prorated.) UC’s HSA contributions are sent to HealthEquity as soon as you meet the HSA eligibility criteria—usually the second day of the month after you enroll in the HSP.

See rules and restrictions.

UC contributes only once during the year, and the contribution amount is based on the family members enrolled as of January 1 of the current year. No UC contribution adjustments are made during the year if you enroll additional family members or drop family members from coverage.

Maximum Contribution

UC’s annual contribution to your HSA is based on if you have single or family coverage in the HSP. You can also make your own tax-free* contributions to your account, up to an annual maximum based on your age. Your contributions plus the UC contribution cannot be greater than the IRS maximum allowed contribution.

*Currently, for residents of California and New Jersey, HSA contributions and earnings are not excluded from state income tax. For more information, please consult your tax advisor.

Single Coverage

  UC’s Annual Contribution* Your Maximum Annual Contribution* IRS Maximum for 2018

Under age 55

$500 $2,950 $3,450

Age 55 or older

$500 $3,950 $4,450

*UC contributes only once during the year, and the contribution amount is based on the family members enrolled as of January 1 of the current year. No UC contribution adjustments are made during the year if you enroll additional family members or drop family members from coverage.

Family Coverage

  UC’s Annual Contribution* Your Maximum Annual Contribution* IRS Maximum for 2018

Under age 55

$1,000 $5,900 $6,900**

Age 55 or older

$1,000 $6,900 $7,900**

*UC contributes only once during the year, and the contribution amount is based on the family members enrolled as of January 1 of the current year. No UC contribution adjustments are made during the year if you enroll additional family members or drop family members from coverage.

**If you are covering a Domestic Partner (DP) under this plan, your DP can also establish his/her own HSA and contribute up to $6,900 for the year, or $7,900 if s/he is over 55 years old. If you are covering your spouse, your combined contribution for the year to the UC HSA cannot exceed this amount. However, if your spouse is or will be age 55 or older, he/she can make a catch-up contribution to his or her own HSA (outside of UC).

If you are married and your spouse is covered by the Health Savings Plan, your combined HSA contribution should not exceed the IRS limit. Covered family members who are no longer your tax dependents, except your covered spouse, may also establish their own HSA and are allowed to contribute up to the IRS annual limit for the family coverage level.

You are responsible for ensuring that your total HSA contributions do not exceed the IRS maximum each year. Amounts contributed over the maximum are subject to income tax.

Learn More

Get all the details about how your HSA works from HealthEquity.