- There are specific requirements to open and contribute to an HSA. You must:
- Be covered by an HSA-qualified health plan.
- Not have other health coverage (e.g., traditional—non-HSA—health plan, Medicare, Tri-Care, VA benefits or even a flexible spending account.
- Not be claimed as a dependent on another individual’s tax return.
- Have a valid Social Security number and U.S. address to establish your HSA.
- As of December 31, have a $0 balance in UC's Health Flexible Spending Account (FSA).
- Once you enroll in Medicare (Part A or B), you are no longer eligible to contribute to an HSA.
- Employees and retirees under age 65 can make after-tax contributions (vs. pre-tax payroll deductions) directly to HealthEquity and take the tax benefit when filing federal income taxes.
- Spouses of UC employees who are enrolled in the Health Savings Plan (HSP) may establish their own HSA by making after-tax contributions directly to HealthEquity. They can take the tax benefit when filing federal income taxes.
- You own your HealthEquity HSA. Any money in the account is yours—and can be saved or used for eligible health care expenses—even if you are no longer enrolled in the HSP or if you retire or end your employment with UC. You can continue to contribute to your HSA as long as you are enrolled in a qualifying high-deductible health plan—even after retirement. You can also continue to use your funds for eligible health care expenses even if you are no longer eligible to contribute to the HSA.
- You are responsible for administering your HSA and must determine:
- Whether you are eligible to make contributions to an HSA
- How much you are able to contribute to the HSA for any calendar year, based on UC’s contributions and how many of your family members are enrolled in the HSP medical plan
- Whether you need to withdraw any excess contributions from the HSA that are over the IRS annual limit for all contributions
- How to spend the funds in your HSA
- Whether the distributions from your HSA are taxable or non-taxable
You cannot delegate these responsibilities to UC or to HealthEquity. As an HSA owner, you are in control of the HSA and are responsible for reporting all contributions and distributions to the IRS on your Form 1040. HealthEquity will provide the tax forms and necessary information to help with reporting and filing taxes. You are responsible for any reporting errors and/or omissions and for paying any additional taxes and/or IRS penalties.
Get all the details from HealthEquity.