Support & FAQ

HSA

  • What is an HSA?
    A Health Savings Account, or "HSA," is like a 401(k) for healthcare. This pre-tax benefit account, in conjunction with your qualified high-deductible health plan, is used to pay for eligible out-of-pocket medical, vision, and dental expenses. You can earn interest on the money in your account and invest it so that it grows over time. An HSA works like a Healthcare Flexible Spending Account (FSA), except that the money in your account is yours if you leave your company or if you have money left over at the end of the plan year.
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  • How do I fund my HSA?

    There are two ways to fund your HSA:

    1. Automatic payroll deductions. During your company's Open Enrollment period, tell your employer how much you would like to contribute to your HSA for the coming plan year. Your employer will deduct that amount (in equal portions) from your paychecks, before taxes are deducted, throughout the plan year.
    2. Direct contributions. You can contribute additional funds to your HSA at any time. While these contributions aren’t tax-free, they can be deducted on your tax return.


    And keep in mind that you only have access to the funds that have been deducted from your paycheck. Your HSA does not fully fund on the first day of the plan year.

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  • How much can I contribute to my HSA?

    For 2016, the annual contribution limits are: $3,350 if you are covered by an individual HDHP policy $6,750 if you are covered by a family HDHP policy. Exception: If you are age 55 or older as of December 31, 2015, you may contribute an extra $1,000 as a catch-up deduction under both individual and family policy coverage for 2016.


    For 2017, the annual contribution limits are: $3,400 if you are covered by an individual HDHP policy or $6,750 if you are covered by a family HDHP policy. Exception: If you are age 55 or older as of December 31, 2016, you may contribute an extra $1,000 as a catch-up deduction under both individual and family policy coverage for 2017.


    These limits are set by the IRS and may change year to year.

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  • Is the total election amount available in my HSA on day one of the plan year, like a Healthcare FSA?
    Unlike a Healthcare FSA, the funds in your HSA must accumulate in your account before you can use them. You can easily monitor your balance in your WageWorks account either online or on our Mobile App so you are always aware of your latest balance.
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  • How do I make additional contributions to my HSA?

    There are two ways to make additional contributions to your WageWorks HSA.

    1. Electronic deposit. The easiest and fastest way is to make an electronic deposit to your HSA. Log into your WageWorks account for instructions.
    2. Check deposit. Log into your WageWorks account and go to the Help section. Download, print, and complete the HSA Contribution Form, and mail the form along with a check to: WageWorks PO Box 9813 Providence, RI 02940-8013
    Alternatively, you may simply note the following information on your check and mail it to the above address:
    • The tax year of your contribution (between January 1 and April 15, you can make a current or prior year contribution)
    • The type of contribution (regular or rollover)
    • Your account number

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  • What is a catch-up contribution?
    Eligible individuals who are over age 55 by the end of the calendar year are allowed to make additional “catch-up” contributions to their HSAs. The catch-up contribution is set by the IRS and the limit for 2016 is $1,000.
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  • Can both spouses make a catch-up contribution?
    Yes; however, the catch-up contribution can be combined and put into one HSA: each spouse must open an HSA and put the catch-up amount into his/her own respective HSA.
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  • Can I contribute to my HSA if I am age 65 and covered under an HDHP?

    Yes, you can contribute to your HSA as long as you are an eligible individual and have not enrolled in Medicare Part A, B, or D. Once you enroll in Medicare you may no longer contribute to your HSA.


    For example, if you enroll in Medicare on July 21, you are no longer eligible to contribute to an HSA as of July 1. Your maximum contribution for that year would be for 6 months of that year (you were eligible the first six months of the year.) Remember to also include ½ of the catch-up amount for that year.


    If you turn age 65 and are still working and are not enrolled in Medicare, you are still eligible to contribute to your HSA.

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  • What if I enroll in an HSA and HDHP in the middle of the year?

    If you enroll in a qualified HDHP midyear,* you may still make the maximum annual contribution into your HSA. However, you must remain enrolled in the plan until the end of the following calendar year in order to avoid potential tax issues.


    * You need to enroll in a qualified HDHP prior to December 1.

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  • What is the deadline to make my HSA contributions?
    You may contribute to your HSA until your tax filing due date (for most people, that date April 15 of the year following the tax year).
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  • What kinds of expenses are covered by an HSA?

    You'd be surprised by how many different kinds of expenses are covered under an HSA. Check out this list of eligible expenses.


    In general, you can use your HSA to pay for any qualified medical expense. Qualified medical expenses are defined by the IRS and include medical care, vision and dental care expenses, prescription drugs, and payments for long term care services and insurance.


    An HSA may reimburse certain types of insurance premiums, such as COBRA continuation, or any health insurance plan maintained while receiving unemployment compensation under federal or state law for the HSA holder or for his/her spouse or dependents. If you have an HSA and are age 65 or older (whether or not you’re entitled to Medicare), you may use your HSA to pay for any deductible health insurance, such as retiree medical coverage other than a Medicare supplemental policy.

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  • Can I use my HSA to pay for health insurance premiums?

    Generally, you cannot treat insurance premiums as qualified medical expenses unless the premiums are for:


    a. Long-term care insurance, subject to IRS mandated limits based on age and adjusted annually (see IRS Publication 502: Long-Term Care).

    b. Healthcare continuation coverage (such as coverage under COBRA – see IRS Publication 502: COBRA Premium Assistance.

    c. Healthcare coverage while receiving unemployment compensation under federal or state law.

    d. Medicare and other healthcare coverage if you are 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).


    For (b) and (c) above, your HSA can be used for your spouse or a dependent meeting the requirement for that type of coverage. For (d) above, if you, the account beneficiary, are not 65 years of age or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not considered a qualified medical expenses.

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  • Can I withdraw the funds from my HSA at any time?

    Yes, you can withdraw funds from your HSA at any time. But please keep in mind that if you use your HRS funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.


    After you reach age 65 or if you become disabled, you can withdraw HSA funds without penalty but the amounts withdrawn will be taxable as ordinary income.

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  • What sort of investment options do I have with my HSA?

    You may invest your HSA funds in bank accounts, money market accounts, mutual funds, and stocks. You may not invest in collectibles, art, automobiles or real estate. Log into your WageWorks account to see what kinds of investment options you have.


    A best practice is to keep a small liquid balance in your HSA to use to pay for current eligible expenses.

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  • Can I use my HSA funds for my family members, although I only have insurance coverage for myself?
    Yes, you can use your HSA to pay the qualified medical expenses for your spouse and dependents, as long as their expenses are not otherwise reimbursed.
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  • Are Medicare Part D premiums considered qualified medical expenses?
    Yes. If an account beneficiary has reached age 65, premiums for Medicare Part D for the account beneficiary, the account beneficiary's spouse, or the account beneficiary's dependents are considered qualified medical expenses.
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  • Is there a spending limit for my HSA?
    No, there is no minimum spending limit for your HSA, and the entire balance can be carried over from year to year.
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  • Is there a limit to how much I can carry over from one plan year to the next?
    No, there are no limits for how much you can carry over from year to year in your HSA.
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  • Can I transfer assets in my IRA into an HSA?

    Yes, the law allows a one-time transfer of IRA assets to fund an HSA.


    The amount transferred may not exceed the amount of one year’s contribution and individuals must be otherwise eligible to open an HSA. Transfers are not taxable as IRA distributions. However, amounts transferred into an HSA from an IRA are not deductible. IRS Publication 969 provides more information.

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  • How do I withdraw my HSA funds after age 65?

    At age 65, you can withdraw your HSA funds for non-qualified expenses at any time although they are subject to regular income tax. You can avoid paying taxes by continuing to use the funds for qualified medical expenses.


    For if you are age 65 or older, premiums for Medicare Part A, B, C or D, Medicare HMO, and employee premiums for employer-sponsored health insurance can be paid from an HSA.

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  • How do I set up my HSA?

    Select your qualified high-deductable health plan and with it, your HSA, either for yourself (individual) or your family during Open Enrollment. Once the plan year starts, you can access your WageWorks HSA by logging into your WageWorks account. You may need to first register for your account.


    Your pre-tax contributions via payroll deductions fund an HSA with BNY Mellon, but you can establish an HSA with a qualified HSA trustee or custodian of your choice. This is typically a bank or brokerage firm. Funds remain tax-free, assuming distributions are only taken for eligible healthcare expenses.

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  • How does an HSA work?

    It’s easy. Simply decide how much you want to contribute to your HSA each year and funds are automatically withdrawn from your paycheck for deposit into your account before taxes are deducted. This means you pay less in taxes and take home more of your pay.


    HSA contributions are deposited in an FDIC-insured, interest-bearing account from which you can draw from at any time. You can choose how much you would like to invest and how much you would like to keep available for your eligible medical expenses. Any funds you put into your HSA and don't use during the plan year stays with you, even if you change employers or retire. And it's there for you today, tomorrow, or anytime in the future.


    WageWorks has partnered with BNY Mellon to ensure that your money is safe and secure. To start investing with BNY Mellon, you need a minimum of $1,000 in your account.

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  • How do I qualify for an HSA?

    To qualify and be eligible to make contributions into an HSA, you must meet all of the following conditions:

    • You must be covered by a qualified high-deductible health plan. Ask your employer for details on coverage under your company’s high-deductible health plan.
    • You cannot be enrolled in another type of pre-tax healthcare benefit account, such as a Healthcare Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA). This includes being enrolled in your spouse’s Healthcare FSA or HRA. You can, however, be enrolled in an HSA-Compatible FSA, which becomes a regular Healthcare FSA once you meet your deductible.
    • You cannot be claimed as a dependent on another person’s tax return.
    • You are not entitled to benefits under Medicare.
    Find out if you qualify for an HSA. Take this short quiz.

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  • Do I have to make a certain amount of money each year to be eligible to enroll in an HSA?
    No. It doesn't matter how much money you make. Anyone who is covered by a qualified high-deductible health plan is eligible to enroll in an HSA.
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  • What is a qualified high-deductible health plan?

    A qualified high-deductible health plan, or “HDHP,” is a type of health insurance plan. While an HDHP has a higher annual deductible than a traditional insurance plan, it also offers tremendous savings, including:

    • Lower monthly premiums then traditional health insurance plans
    • Coverage for preventative care services
    • A limit on the total out-of-pocket payment you are required to pay, including deductibles, covered medical expenses, copayments, and co-insurance
    You must be covered by a qualified HDHP to be eligible to enroll in an HSA.For individual coverage, the HDHP must have an annual deductible of at least $1,300 and annual out-of-pocket expenses (including co-payments and deductibles but not insurance premiums) must not exceed $6,550. For family coverage, the HDHP must have an annual deductible of at least $2,600 and annual out-of-pocket expenses (including co-payments and deductibles but not insurance premiums) must not exceed $13,100. These are the 2016 limits set by the IRS. These limits may change from year to year.

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  • My spouse has a health insurance policy through his/her employer. Am I eligible to participate in an HSA?

    It depends. If your spouse has an individual health insurance policy with no other insurance, and you are enrolled in a high-deductible health plan, then yes, you are eligible to participate in an HSA.


    But if your spouse participates in a Healthcare FSA or HRA, and those benefits cover your healthcare expenses too, then no, you are not eligible to participate an HSA. Why? Even though you are not covered by your spouse’s health insurance, the IRS considers your spouse’s Healthcare FSA or HRA to be “other insurance.”


    An exception would be if your spouse has an HSA-Compatible FSAs or what’s sometimes referred to as a “limited-purpose” HRA that covers vision and dental care expenses only. If your spouse participates in either an HSA-Compatible FSA or a limited-purpose HRA, then yes, you may participate in an HSA.

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  • My spouse has a traditional health insurance policy through his/her employer. Am I eligible to participate in an HSA?

    If your spouse has a traditional health insurance plan, such as a PPO or HMO, that provides individual coverage only, then yes, you are eligible to participate in an HSA, but only if you are enrolled a high-deductible health plan and your spouse doesn’t also have a Healthcare FSA or HRA that covers your healthcare care expenses.


    If your spouse has a traditional health insurance plan that provides family coverage, and you have not exempted from that coverage, then no, you are not eligible to participate in an HSA. However, if your spouse has a traditional health insurance plan that covers him/her and your children only, then you are eligible to participate in an HSA.

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  • Can I enroll in an HSA if my employer offers a high-deductible health plan but not an HSA?
    Yes! As long as you are covered under a qualified high-deductible health plan, you may have an HSA. An HSA is an individual account that is not tied to your employer.
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  • My spouse and I have family coverage under a single high-deductible health plan. Can we both have an HSA?
    Yes, you and your spouse may both have an HSA. However, the contributions to both HSAs cannot exceede the annual family limit. The The IRS regulations limit the total amount you both may contribute to your HSAs and for 2016, the annual family contribution limit is $6,750.
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  • What happens to my HSA if I leave my job?

    This is one of the best things about an HSA: it's yours! Your HSA is yours and yours alone. It is yours to keep, even if you resign, are terminated, retire from, or change your job. You keep your HSA and all the money in it, but keep in mind that there may be nominal bank fees if you are no longer enrolled in your HSA through your employer.


    You can even use your HSA to pay for long-term care insurance, COBRA premiums, or other health insurance premiums if you’re receiving unemployment benefits.

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  • Who can contribute to my HSA?

    Almost anyone can contribute to your HSA—you, your spouse, your employer, your family members. For example, if you enrolled in an HSA through your employer, both you, as the employee, and your employer may make contributions. Additionally, your spouse may contribute to your HSA on behalf of other family members (e.g., your children) as long as the other family members are covered under the high-deductible health plan and are not otherwise insured.

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  • What happens if I contribute to my HSA more than the maximum annual limit that the IRS allows?
    HSA contributions in excess of the IRS annual contribution limits ($3,350 for individual coverage and $6,650 for family coverage for 2015) are not tax deductible and are generally subject to a 6% excise tax.

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

    1. Remove the excess contributions and the net income attributable to the excess contribution before they file their federal income tax return (including extensions). You’ll 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 you HSA to make up for the excess contribution during the previous year.
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  • What is HSAStore.com?
    HSAStore.com is the only one-stop online shop stocked exclusively with HSA-eligible products and services. WageWorks has partnered with HSAStore.com to make it even easier for you to use your WageWorks HSA dollars—and get the best value from each dollar spent. Every item for sale at HSAStore.com is eligible for HSA reimbursement—and there are more than 4,000 eligible products to choose from.
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  • Can I use my WageWorks Healthcare Card at HSAstore.com?
    Yes! When you use your WageWorks Healthcare Card to buy products and services from HSAStore.com, your card transactions are automatically verified—no more submitting receipts! And all HSAStore.com items are guaranteed to be eligible for reimbursement under your WageWorks HSA. Keep in mind that HSAStore.com items with an “Rx” icon require a prescription from your doctor to be eligible for HSA reimbursement. But HSAStore.com makes it really easy—they’ll submit prescription requests to your healthcare provider on your behalf so you can get reimbursed quickly.
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  • Are all products on HSAStore.com eligible for reimbursement under my WageWorks HSA?
    Yes! HSAStore.com items with an “HSA-OK” icon are eligible without a prescription. And items with an “HSA-Rx” icon are eligible for reimbursement with a prescription from your doctor.
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  • Are all products on HSAStore.com eligible for reimbursement under my WageWorks HSA? (1)
    Yes! HSAStore.com items with an “HSA-OK” icon are eligible without a prescription. And items with an “HSA-Rx” icon are eligible for reimbursement with a prescription from your doctor.
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  • Do I have to submit receipts for my purchases at HSAStore.com?
    If you use your WageWorks Healthcare Card to pay for HSAStore.com items, then no, you typically don’t have to submit receipts to verify the eligibility of your purchases. Keep in mind that if you use another credit card to pay for HSAStore.com items and submit a claim for reimbursement, you need to submit a receipt to verify the eligibility of your purchase. We recommend that you always keep receipts in the event that information needs to be verified.
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  • Does WageWorks share my information with HSAstore.com?
    No. WageWorks does not share any of your information with HSAStore.com.
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