Save Smart, Live Well

HealthEquity presentation (PowerPoint)

HSA Investment Guide

A Health Savings Account helps you pay for eligible medical expenses that are not covered by your insurance plan.

  • The account is owned by you, and not Auburn University.

  • Both you and the university are eligible to contribute to the HSA account. 

Triple Tax Benefits

HSAs offer triple tax benefits:

  • Contributions are pre-tax.

  • Earnings grow tax-free.

  • Withdrawals for eligible medical expenses are tax-free.

These benefits provide a way to save for healthcare costs while reducing your taxable income.

Examples of Eligible and Ineligible Expenses

What's Eligible?

  • Most medical care that is subject to your deductible (copays, doctor visits, etc.)

  • Prescription drugs

  • Dental and vision care

  • Insulin (with or without prescription)

  • Flu Shots

  • Emergency room visits

ACA Preventive Drug List 

HSA Preventive Drug List

Publication 502 - Medical and Dental Expenses (IRS)

What's Ineligible?

  • Controlled substances

  • Cosmetic surgery

  • Medicines and drugs from other countries

  • Veterinary fees

  • Select insurance premiums

  • Nutritional supplements

Publication 502 - Medical and Dental Expenses (IRS)

Contributions

Employee Contributions

Employee HSA contributions are tax-free via payroll deductions. Unlike the FSA, an employee can change this monthly deduction throughout the year and contribute up to the following annual limits:

 

Limit

Employee Only

$4,300

All Other Plans

$8,550

  •  The IRS treats any non-single contract as a family contract for deductibles, out-of-pocket expenses, and contributions.

  • Employees aged 55 and older can also contribute an additional $1,000 in “catch-up” funds each year.

  • Employee and employer contributions combined make up the annual limits.  

Employer Contributions

Auburn will also contribute to the employee’s HSA. The employee must open their HSA account to receive this money and contribute at least $60 annually.

Employees making $40,800+ annually

Employees making less than $40,800+ annually

Employee Only

The employee will receive $250.*

The employee will receive $450.*

All Other Plans

The employee will receive $500.*

The employee will receive $900.*

* New HSA enrollments effective on or after July 1 will be prorated to 50% of the stated amount.

FAQs

You must be covered under a qualified High Deductible Health Plan (HDHP).

  • You cannot:

    • Have other health coverage*

    • Be enrolled in Medicare

    • Be claimed as a dependent on someone else’s tax return

* Other health coverage does not include specific disease or illness insurance, accident, disability, dental care, vision care, and long-term care insurance.

Anyone can contribute to your HSA – including an employer or family member.

  • Employee and employer contributions (including pre-tax salary deferrals) are not taxable.

Each year, the IRS sets contribution limits. These limits are for the total funds contributed, including company contributions, your contributions and any other contributions.

Item

Limit

Employee only

$4,300

All other plans

$8,550

Catch-up contribution maximum (ages 55 or older)

$1,000

Important to Note

  • For each month a person is HSA-eligible, they can contribute 1/12 of the applicable maximum contribution limit for the year.

  • The catch-up contribution limit is not adjusted for inflation and remains the same each year.

  • The contribution limit is not reduced for the year if the person turns 55 years old after Jan. 1.

No, you must be enrolled in an HDHP to be eligible to contribute to an HSA. Traditional health plans or other insurance coverage options do not qualify.

You can contact HealthEquity at 1-866-346-5800 or visit www.healthequity.com for additional information. (The phone line is available 24/7/365.)

Last updated: 09/24/2024