News & Updates

What is the FSA? Does it have anything to do with the HSA or HRA?

The HealthCare FSA is a tax-free account that allows a person to pay for essential health care expenses that are not covered or are partially covered by your medical, pharmacy,...

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If I use funds from my HSA for medical expenses, can I claim them as a deduction on my income tax?

No. Since eligible expenses are paid with tax-free dollars from your HSA, you cannot claim the same expenses on your income tax return.

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How are HSA withdrawals monitored? Is there an expense verification process like an FSA or HRA?

Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified...

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If I am enrolled in single coverage under the CDHP, can HSA funds be used for my spouse or eligible dependents that are not covered under my health plans?

HSA funds can be used for you, your spouse, or eligible dependents (as identified on your Federal tax return) even if they are not covered under your CDHP coverage.

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What happens if I use my HSA funds for ineligible expenses?

An HSA allows you to withdraw funds for any reason. However, you would need to pay ordinary tax and an additional penalty of 20% on any funds that are withdrawn...

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What happens to my HSA funds when I retire?

HSA funds are portable. At retirement, you will retain any funds in your HSA. You may also continue to use HSA money to pay for out-of-pocket health care expenses.

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What happens to my HSA if I am no longer an eligible individual? For example, if I change coverage from the CDHP to an HMO or EPO or if I enroll in Medicare?

If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses, however, you can no longer contribute money to...

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Do I need to be a United States citizen to open and contribute to an HSA?

In general, you must be a United States citizen, green card holder, or a United States resident to participate. An HSA cannot be opened without a verifiable United States residential...

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What is the last-month rule as it pertains to an HSA?

The last-month rule states that if you are covered by an HSA-eligible health plan on the first day of the last month of a given year, you are considered an...

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My spouse is a state employee with an HRA. I am a new employee and plan to enroll in the CDHP with an HSA, am I eligible to contribute to an HSA?

If your spouse has an HRA, you are disqualified from establishing and/or contributing to an HSA per the IRS.

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