FAQs

Contributions

The custodian of the BenefitWallet HSA is The Bank of New York Mellon (BNY Mellon). Deposits to your HSA checking account are FDIC-insured up to the FDIC coverage limit.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. The FDIC insures your deposits up to a specified limit in the unlikely event of the failure of the insured bank or savings institution. Please visit the FDIC Web site at www.fdic.gov for more details.

The FDIC does not insure the money in your HSA investment account.

No. You may only contribute cash to your BenefitWallet HSA. You may set up an HSA investment account where you may invest your HSA contributions in a select group of mutual funds or securities.

No. Your contributions to your HSA are limited to a maximum annual contribution adjusted each year by the IRS. Your contributions to an IRA have no bearing on your HSA and vice versa.

Contributions to HSAs can be made by you, your employer, or both. All contributions are aggregated to determine whether you have contributed the maximum allowed (see above). If your employer contributes some of the money, you can make up the difference. If your employer makes a contribution to your HSA, the contribution is not taxable to you the employee.

The annual employer contribution, if any, is determined by your employer. Please consult with your Human Resources office for more information.

Yes. If you are 55 or older and covered by a qualified HDHP, you can make catch-up contributions each year until you are enrolled in Medicare benefits. The maximum annual catch-up contribution is $1,000.

If you will reach age 55 before the close of the calendar year, you may make a full year's catch-up contribution, provided you are covered by a qualified HDHP no later than December 1.

If you and your spouse are 55 or older, then you are each permitted to make the full catch-up contribution, provided you are both covered by a qualified HDHP for the entire year. You each must contribute the catch-up contribution to your own account.

No. Unlike 401(k)s and IRAs, there are no mandatory distribution requirements for an HSA.

Yes. You can make catch-up contributions each year until you are enrolled in Medicare benefits. The maximum annual catch-up contribution is $1,000.

You may make a full year's catch-up contribution, provided you are covered by a qualified HDHP no later than December 1.

If your spouse is 55 or over, then you are each permitted to make the full catch-up contribution, provided you are both covered by a qualified HDHP for the entire year. You each must contribute the catch-up contribution to your own account.

  • For 2018, the annual contribution limit is $3,450 for individual coverage and $6,900 for family coverage.
  • For 2019, the annual contribution limit is $3,500 for individual coverage and $7,000 for family coverage.

If you are age 55 or older, you may contribute up to $1000 more as a "catch-up" contribution.

These amounts are valid as long as you enroll in qualified HDHP coverage before the first day of December, meaning you have held at least one full month of HDHP coverage, and so long as you continue to maintain qualified HDHP coverage for the next 12 months (Thirteen months in total).

Yes. You may have more than one HSA and you may contribute to them all. However, this does not provide any additional tax advantages, as the total contributions to your accounts cannot exceed your maximum annual contribution. Contributions from your employer, family members or any other person must be included in the total.

Contributions to your HSA are not subject to federal income tax or state tax (for most states) unless used for non-qualified medical expenses.

Contributions may be made either directly to your HSA or through payroll deduction, if your employer participates. If you make your contributions through payroll deductions, the amount is taken from your payroll before taxes are calculated. If you make deposits directly to your account, you may take an "above the line" deduction when filing your annual tax return.

Although you do not take a deduction for employer contributions, they are not included in your gross income.

If a family member or anyone else contributes to your HSA, the tax advantages apply to you and not the person making the contribution. You may deduct the contribution amount when filing your annual income taxes, in the same way you would if you had deposited the post-tax funds on your own.

If your employer contributes to your account, you do not take a deduction for these contributions, but they are not included in your gross income.

All contributions to the account are combined and subject to the maximum annual contribution.

Contributions for the taxable year can be made in one or more payments at your convenience. If your employer contributes to your account, they, too, may make either one lump-sum or periodic deposits to your account.

Maximum contribution limits are determined annually by coverage type (single or family). The annual total of all contributions to your account, from all sources, cannot exceed the maximum annual contribution.

No. You are not eligible to contribute because you are not covered by a qualified HDHP. However, any distributions you make from your HSA for qualified medical expenses continue to be free of federal taxes and state tax (for most states) and excludable from your gross income.

Remember that unused HSA dollars roll over from year to year. You may invest unused HSA dollars in investment options, providing the opportunity for funds to grow.

Catch-up contributions are permitted contributions in excess of the maximum annual contribution, made by HSA owners who are covered by a qualified HDHP and are age 55 or older.

Catch-up contributions to your HSA are allowed for the calendar year in which you reach age 55. If you will reach age 55 before the close of the calendar year, you may make a full year's catch-up contribution, provided you are covered by a qualified HDHP no later than December 1.

No. A general-purpose FSA or HRA is other coverage that makes you ineligible for an HSA, because it is available to reimburse the qualified expenses of the employee, spouse and dependents. Consequently, if either you or your spouse participates in a general-purpose FSA or HRA, neither of you will be eligible to contribute to an HSA.

If you contribute more than the maximum annual contribution to your HSA, you may withdraw the excess without penalty until the deadline (including extensions) for filing your tax return for the tax year for which the excess contribution was made. After that time, the funds are subject to both income taxes and an excise tax.

No. You cannot take the excess as an above the line deduction. You have until the filing date of your federal tax return (including extensions) to take a distribution of the excess contribution from your HSA without incurring a 6% excise tax. The amount of the excess contribution is includable in your gross income for tax purposes.

You may increase, decrease, start or stop your HSA contributions at any time, provided the change is prospective only. Remember, you are still restricted by the maximum annual contribution limit.

You can still make your maximum annual contribution. Your eligibility to contribute to an HSA is determined by the effective date of your qualified HDHP coverage. Your contribution for any given year depends on your enrollment in HDHP coverage by December 1 of that year and maintaining qualified HDHP coverage for the next 12 full months (13 months total).

If you maintain qualified HDHP coverage for less than 12 full months, the maximum is prorated by the number of full months of coverage.

The "Establishment Date" of your HSA is generally the later of :

  • The effective date of your qualifying HDHP coverage, or
  • The date you provide evidence of intent to open the account (e.g., completion of a form or application acknowledging your desire to open an HSA).

You can only receive tax-free distributions from your HSA for qualified medical expenses incurred after the "Establishment Date". Because you are ultimately responsible for determining which expenses are reimbursable from your HSA, you should consult with your personal tax advisor to determine how tax guidance on this issue should be applied to your specific situation.

You have until April 17, 2018 to contribute with respect to the 2017 tax year if you are a calendar year taxpayer.