Attention Employers: See the latest COVID relief, including COBRA subsidy and DCFSA changes here →
  • LinkedIn
  • Twitter
  • Facebook

Healthcare Benefits

Employee Benefits

Health Savings Account

Healthcare is changing fast, and there are new ways for you to benefit. A WageWorks® Health Savings Account (HSA) is like a 401(k) for healthcare. Combined with your company’s high-deductible health plan, a WageWorks HSA gives you an easy, safe way to lower your healthcare costs today while saving money for future healthcare expenses.

Smart, Simple Savings for a Healthy Future

Spot Photo HSA Final

Why enroll in a WageWorks HSA?

  • Easily manage today’s healthcare costs and save money for future healthcare expenses
  • Your high-deductible health plan out-of-pocket limits do not exceed $7,000 for individual coverage or $14,000 for family coverage in 2021.
  • Build your healthcare nest egg with access to market-leading, low-cost investment options
  • Earn money while saving money with no “use it or lose it” risk

"A WageWorks HSA is a no brainer for our family. It's the perfect way to plan and pay for healthcare before our high-deductible health plan kicks in. Best of all, we took home almost $2,000 more this year and are continuing to save for next year. What's not to love?"

- A happy WageWorks HSA participant  

WageWorks HSA: See It In Action

HSA 101

Savings with Your HSA

An HSA can help you save on taxes in three ways.

  1. Annual contributions to your HSA are tax-free.
  2. Interest accrued in your HSA is not taxable.
  3. Withdrawals for qualified out-of-pocket healthcare expenses are tax-free.

Use this calculator to see how much you can save with an HSA.

Your Estimated Tax Savings
Without HSA With HSA 
Gross annual pay (estimate) $60,000 Gross annual pay (estimate) $60,000
Estimated tax rate (30%) -$18,000 Max. annual family HSA contribution -$7,000
Net annual pay =$42,000 Adjusted gross pay =$53,000
Estimated annual medical expenses -$7,000 Estimated tax rate (30%) -$15,945
Final take-home pay =$35,000 Final take-home pay =$37,055
Take home this much more with a HSA Account: $2,055

All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, healthcare expenses, and tax savings may be different.

Qualifying for an HSA

An HSA is right for you if:

  • You have a high-deductible health plan with an annual deductible of at least $1,400 for individual coverage and $2,800 for family coverage.*
  • Your high-deductible health plan out-of-pocket limits do not exceed $6,900 for individual coverage or $13,800 for family coverage.*
  • You are not covered by Medicare.
  • You don’t have another insurance plan such as a spouse’s Healthcare Flexible Spending Account or a Health Reimbursement Arrangement provided by your employer.
  • You cannot be claimed as a dependent on another person’s tax return.

Find out if you’re qualified to enroll in an HSA. Take this short HSA qualification quiz.

* Figures are current for 2020.

Contributing to Your HSA

Building your healthcare nest egg couldn’t be easier. Simply decide how much you want to contribute to your WageWorks HSA each year, and funds are automatically withdrawn from your paycheck for deposit into your account before taxes are deducted.

How To Contribute

You can add money to your HSA in two ways:

  1. Automatic payroll deductions. Funds are automatically withdrawn from your paycheck for deposit into your HSA before taxes are deducted.
  2. Direct contributions. You can choose to add funds to your HSA at any time. While these contributions aren’t tax-free, they can be deducted on your tax return.

Any money left in your account at the end of the year stays in your HSA. Or you can choose to move it to an investment account that offers competitive interest rates, low fees, and a variety of investment options.

How Much To Contribute

You can contribute the following amounts to your HSA:*

  • Up to $3,550 annually for individual coverage 
  • Up to $7,100 annually for family coverage 
  • If you are 55 or older in 2020, you can contribute an additional $1,000 annually

The IRS sets the annual contribution limits. A different limit may apply to you according to your employer’s plan.

How Much Is Too Much

HSA contributions in excess of the IRS annual contribution limits are not tax deductible and are generally subject to a 6% excise tax.

If you’ve contributed too much to your HSA, you can do one of two things:

  1. Remove the excess contributions and the net income attributable to the excess contribution before you file your federal income tax return (including extensions). You will pay income taxes on the excess removed from your HSA.
  2. Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions. Next year you may want to consider contributing less than the annual limit to your HSA to make up for the excess contribution during the previous year.

Consult with your HSA trustee to return excess contributions and determine net income attributable to the excess contribution. See Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts for more information.

*Annual contribution limits for 2020

Estimating Contributions to Your HSA

While there are no spending limits on your HSA and the money in your HSA rolls over year to year and is yours to keep, it’s still a good idea to estimate how much you spend on eligible healthcare expenses for you and your eligible dependents each year before you decide how much to contribute to your HSA.

Use this calculator to estimate your annual eligible expenses and determine an annual HSA election amount that’s right for you and your family.

Enrolling in Your HSA

You enroll in or renew your enrollment in your HSA through your employer during your Open Enrollment period each year. Your human resources department or benefits administrator can tell you when employees in your organization can enroll in an HSA and help you get started.

Changing Your HSA During the Year

You should plan on an election amount to your HSA that meets your needs for the entire plan year. Check with your benefits administrator to see how often you can change your HSA election amount during the plan year.

Key Features and Benefits of a WageWorks HSA

Savings Options and Tools to Grow Your Healthcare Nest Egg Quickly

The best part about your WageWorks HSA is that you can earn money while saving money. Just like a traditional savings account, the money in your HSA earns interest in an FDIC-insured account from which you withdraw funds at any time. You can keep some money liquid in your account to pay for today’s healthcare expenses as they arise. And you can invest the remainder of your balance to save for future healthcare expenses.

WageWorks has partnered with a trusted and FDIC-insured bank, BNY Mellon as your HSA custodian. You get competitive interest rates, low fees, and attractive investment options to grow your healthcare nest egg according to your own needs and risk tolerance. You can choose from several high-, moderate-, or low-risk investment vehicles to maximize your savings as your financial situation changes over time. And your WageWorks HSA is supported by a full-featured technology platform with wealth planning tools.

Once your balance reaches $1,000, you may start investing the money in your HSA and not pay taxes on your gains. Your interest and investment income earned on HSA balances is also tax-free, allowing you to build a bigger nest egg even faster. *

*HSA interest and investment income are not subject to federal income taxes. You should consult a tax advisor regarding your state’s tax code.

Your HSA is Yours—Period

With a WageWorks HSA, you can take your healthcare nest egg with you wherever your career takes you. Unlike a Healthcare Flexible Spending Account, your HSA is yours to keep, even if you change jobs, switch healthcare plans, or retire. If you lose your job and elect to retain your high-deductible health plan  under COBRA, you may even pay the COBRA premiums from your HSA. The money in your account always rolls over year to year—there’s no “use it or lose it” risk.

Multiple Payment Options to Provide You with Flexibility

With a variety of convenient payment options, your WageWorks HSA makes it easy for you to get reimbursed for hundreds of eligible healthcare expenses, like copayments for doctor visits, prescription drugs, and new eyeglasses or contact lenses.

Payment options include:

  • Pay My Provider. Arrange for convenient direct payments to your healthcare provider. Simply log into your WageWorks account and fill out a form to have eligible expenses paid directly from your account.
  • Pay Me. Withdraw funds directly from your account to pay for eligible expenses. This option works just like an ATM, but without the ATM fees. You may also have HSA funds directly deposited into your bank account or a check mailed to you.
  • Pay Me Back. Arrange for account funds to be directly deposited into your bank account or a check to be mailed to reimburse you for eligible expenses you've already paid.
  • Pay by Debit Card. Depending on your employer’s plan, you may use the convenient WageWorks Healthcare Card associated with your account to pay for hundreds of eligible healthcare products and services. If you have more than one WageWorks healthcare benefit account, this smart debit card knows which account to draw money from first. 

Web Portal and Mobile App Make Your HSA Easy to Manage

WageWorks makes it easy to manage your HSA. Log into the WageWorks secure web portal to manage all aspects of your WageWorks account:

  • Check account balances
  • Withdraw funds from your account and view account activity
  • Look up eligible expenses
  • Upload and store receipts for your tax records
  • Select your reimbursement methods (by check or direct deposit)
  • Choose to receive account alerts by email or text

The WageWorks EZ Receipts® mobile app puts the power of the WageWorks web portal in the palm of your hand. Download this handy app to your mobile device, log into your account, and check balances, submit claims, view transactions, snap photos of receipts, get account alerts by text or email—all on the go!

Compatible with a Healthcare FSA to Maximize Your Savings

The combination of a Healthcare FSA and an HSA is a great way to maximize your savings this year and in the future. But there are rules guiding your participation in both accounts.

You can choose to have both an HSA and Healthcare FSA if you:


Which one is right for you?
Account Type Annual Contribution Limits* Insurance Coverage Requirements Portability End of Year Balances
Healthcare FSA

$2,750 for individuals or families

Different limit may apply to you according to your employer's plan

You must be eligible to enroll in your employer's group health insurance plan  Annual account might be forfeited if you change jobs or retire Dependent upon your employer's plan

$3,550 for individual coverage

$7,100 for family coverage

$1,000 additional catch-up contribution if 55 or older as of January 1, 2020

High-deductible health plan required Account is yours to keep even if you change jobs, switch healthcare plans or retire Balances carry over year-to-year indefinitely
*Annual contribution limits for 2020

Employee Resource Center

Ready-to-use tools to help you make the most of your WageWorks benefits.