A Health Savings Account (HSA) is a tax-advantaged savings account available to employees enrolled in a qualified High Deductible Health Plan (HDHP).

Key Advantages

• Triple tax advantage: tax-free contributions, tax-free growth, and tax-free withdrawals for eligible expenses
• Funds remain yours permanently
• Unused funds roll over year to year
• Investment options available once balance reaches $2,000

2026 Contribution Limits

• Individual: $4,400
• Family: $8,750
• Age 55+: Additional $1,000 catch-up contribution

Important HSA Eligibility Rules

To contribute to an HSA, you must:

• Be enrolled in a qualified High Deductible Health Plan (HDHP)
• Not be enrolled in a traditional Healthcare FSA
• Not be enrolled in Medicare
• Not be claimed as another person’s tax dependent
• Not be covered by other disqualifying non-HDHP medical coverage
• Not be collecting Social Security

Important IRS Contribution Rule

IRS contribution limits are based on the calendar year, not the plan year. If HDHP coverage begins or ends mid-year, HSA contribution limits are generally prorated based on months of eligibility unless the employee qualifies under the IRS last-month rule by remaining HSA-eligible through the testing period.

Enrollment and Changes

Employees enrolled in a qualified High Deductible Health Plan (HDHP) may enroll in, change, or stop HSA contributions through Employee Navigator at any time during the year; changes do not require a qualifying life event. Contribution changes generally become effective the following pay period.

HSA eligibility is subject to IRS rules.

When Funds Are Available

Funds are available as contributions are deposited into your account through payroll deductions or direct contributions. You may only use the balance currently available in your HSA.