Health Savings Account

An HSA is an individually owned savings account that accompanies a qualified high deductible health, and the funds may be used towards future eligible medical expenses or retirement. Your HSA funds may be rolled over from year to year.

You must be enrolled in the High Deductible Health Plan (HDHP) to contribute towards an HSA.  If you are not enrolled in the HDHP, you will not be able to contribute to an HSA.  

HSA’s offer a triple tax advantage:

  1. Contributions are pre-tax or tax-deductible
  2. Earnings on the balance and investments are not taxed
  3. Funds withdrawn for qualified medical expenses are not taxed

In addition to the tax advantage, you may turn your HSA into an investment account once you reach a threshold of $2,000 in your account.

If you are nearing Medicare entitlement, please review the HSA & Medicare Overview.

Contributions

  • HALO Contributions: HALO contributes to your HSA, employees with single coverage receive $500/year and employees with all other coverage receive $1,000/year. This is free money and the funds are yours to keep. 
    • Halo makes a contribution in January and July each year.
    • You will automatically receive the contribution based on your HDHP enrollment.
  • Your Contributions:  You may change your contribution amount at any time throughout the year.
  • Contribution Limits: The IRS has a limit on how much you can contribute to your HSA on an annual basis, these limits are outlined below. The maximum HSA contributions are:
    • Single: $4,400
    • Family: $8,750
    • Employees age 55 and older may contribute an additional $1,000 annually in catch-up contributions.

Resources & Tools