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Investing with an HSAHuman Resources
There are now two options for employees to elect to have tax-exempt dollars to be deducted from their pay checks to cover unreimbursed medical, dental and vision expenses – a Health Care Flexible Spending Account (FSA) and a Health Savings Account (HSA). Employees who participate in the Classic Plan, Premier Plan or who don’t participate in UA health coverage at all are eligible to participate in a Healthcare Flexible Spending Account. Only employees who participate in the Health Savings Plan can participate in a Health Savings Account. All employees, regardless of their health plan participation, are eligible to participate in Dependent Care Flexible Spending Accounts.
Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSA) are tax-exempt accounts that you can use to pay for eligible medical, dental, vision, prescription and dependent day care expenses. Your contributions to an FSA are deducted from your pay before taxes, which lowers your taxable income. Flexible Spending Accounts are Administered by UMR. See the University’s full Flexible Benefit Summary Plan Description or additional information from UMR including links to detailed lists of eligible or ineligible expenses.
You have two FSA options:
Healthcare FSA - Employees who participate in the Health Savings Plan are not eligible for the Healthcare FSA. All other benefits-eligible employees are eligible to participate in a Healthcare best restaurants in russellville ar FSA.
Dependent (day) Care Account – All benefits-eligible employees are eligible to participate in the Dependent Care FSA.
Contributions will be deducted from your paycheck exempt from taxes. You will have access to your full Healthcare FSA annual contribution amount any time during the calendar year.
| Healthcare FSA | Dependent Care FSA | |
|---|---|---|
| Healthcare FSA | Dependent Care FSA |
Eligibility | All eligible employees, excluding those participating in the Health Savings Plan | All eligible employees |
2022 Contribution Maximum | $2,750 – Maximum Annual Contribution | $5,000 - Maximum Annual Contribution if married & filing jointly or single $2,500 - Maximum Annual Contribution if married and filing separately |
Plan Year Rollover | Any amount between $50 up to $550. Excess is forfeited. | Unused funds are forfeited |
Eligible Expenses | Medical, prescription drug, dental & vision expenses, including copays, coinsurance & deductibles | Dependent care expenses for daycare or after-school care expenses for a child under age 13, an elderly person or a person with disabilities as long as you claim them as a dependent on your tax return. Expenses must be incurred because you & your spouse are working or looking for work. |
Health Savings Accounts (HSA)
Health Savings Accounts (HSA) are pre-tax accounts that Health Savings Plan participants can use to pay for eligible medical, dental, vision, and prescription expenses. Contributions to an HSA are deducted before taxes, which lowers taxable income. Health Savings www optum com hsa Accounts are administered by Optum Bank.
Once an employee enrolls in the Health Www optum com hsa Plan, a Health Savings Account (HSA) with Optum Bank will be opened for them.
The IRS requires the following in order for you to enroll in an HSA:
- You must be enrolled in the Health Savings Plan.
- You can’t have other health coverage that pays for out-of-pocket health care expenses before you meet your plan deductible.
- You or your spouse can’t have a Healthcare FSA or Health Reimbursement Account (HRA) in the same year that you have an HSA.
- You can’t be eligible for or enrolled in Medicare, covered by TRICARE, or have received Veterans Administration (VA) benefits in the three previous months.
- You can’t be claimed as a dependent by someone else.
What are the differences between FSAs and HSAs?
| Healthcare FSA | HSA | |
|---|---|---|
| Healthcare FSA | HSA |
2022 Contribution Maximum | $2,750 pre-tax Elect contribution amount for the year at new hire and during Open Enrollment. No changes allowed during the year without an eligible qualifying event. | Individual: $3,650 pre-tax Family: $7,300 pre-tax Includes University contributions. $1,000 additional catch-up contribution allowed if you are 55 or older. |
2022 Employer Contribution | None | Individual Coverage – up to $500 Family Coverage – up to $1,000 |
Plan Year Rollover | Any amount over $50 up to $550 | Any amount |
Account Ownership | Account is owned by the University. If you leave, you can continue to use it through COBRA; once COBRA ends account balance is forfeited. | You own the account. You can take it with you if you leave the University or retire. |
Account Growth | Your contributions
| Your contributions University contributions Transfers Interest Investment income |
Access to Funds | Full yearly contribution any time during the plan year | Only funds deposited in the account |
Reimbursement | File eligible claims for the plan year by March 31 of the following year | HSA funds can be used to pay for any eligible services incurred after your start date |
Eligible Expenses | Copayments or deductibles, dental care, vision care, qualifying prescriptions, certain medical equipment. For a full list of qualified medical expenses, visit www.irs.gov. | |
Health Savings Account contributions cannot be forfeited. Unused amounts will carryover each year. Also, If you leave UA employment, you can take the account with you.
Get the most out of your Optum Bank® HSA
Contributing to your Optum Bank® Health Savings Account (HSA) is a great step in helping to plan, save and pay for health care for your family. It’s an easy, convenient way to offset your out-of-pocket expenses until your deductible is reached.
Learn more.
Register for online access at optumbank.com!
If you did not previously have an Optum Bank account, we automatically created one for you when you enrolled in HSA. Register for online access so that you can manage your account and www optum com hsa educational tools such as videos and webinars.
Download the Optum Bank app
For convenient access to your HSA when you are on-the-go
Watch a brief video to learn about the app.
Take advantage of integration with UHC.
Optum Bank is also fully integrated with myuhc.com and the UHC app; you have access to your Optum Bank account through myuhc.com and the app if you are enrolled in a high deductible medical plan offered www optum com hsa Resourcing Edge.
Activate your Optum Bank debit Mastercard®.
If you choose to enroll in the HSA, you will receive your debit card in the mail. Before you can use this card, you need to activate it. If you don’t receive your debit card, please call Optum Bank at (866) 234-8913.
Learn about qualified medical expenses.
Find out what you can buy with your HSA. Qualified medical expenses are designated by the IRS. They include medical, dental, vision and prescription expenses. Learn more about qualified expenses from the official IRS publication. Go to https://www.irs.gov/pub/irs-pdf/p502.pdf.
If you have any questions about your HSA or about how to download or use the mobile app, please contact Resourcing Edge Benefits at (877) 703-8010.
Sincerely,
Your Resourcing Edge Benefits Team
Matt Kinnear
Senior Director of Client Services at Resourcing Edge
Senior Director of Client Services for Resourcing Edge, an industry leader in human capital management solutions. Matt has been supporting clients at Resourcing Edge for over 5 years. His goal: to provide innovative solutions and services exceeding client expectations.
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Health Savings Account (HSA) through Optum Bank
If you enroll in one of the State's High Deductible Health Plans (HDHP), you may be eligible to open a Health Savings Account (HSA) through Optum Bank. An HSA is a tax-advantaged savings account that can be used to pay for eligible healthcare expenses.
What are the benefits of an HSA?
A Health Savings Account (HSA) helps you plan, save, and pay for healthcare.
- The State of Colorado contributes $60 per month to your account.
- You own your HSA. The money belongs to you, even deposits made by others to your HSA.
- All unused funds roll over year to year.
- You keep your HSA even if you change jobs, change health plans, or retire.
- Your HSA has www optum com hsa benefits. Money goes into and comes out of an HSA tax-free (as long as HSA funds are used to pay for qualified healthcare expenses).
Monthly State Contribution
In order to be eligible for the state contribution of $60 per month you must complete the following steps:
- Elect and HSA qualified High Deductible Health Plan in Benefitsolver
- Elect the HSA option in Benefitsolver
- Agree to the terms and conditions in Benefitsolver
Once all steps have been completed and the State receives your account information from Optum Bank, the employer contributions will begin prospectively.
Questions?
Optum Bank: 866.234.8913
optumbank.com
For enrollment questions, please reach out to your agency's Benefit Administrator.
Eligibility
You can open a Health Savings Account (HSA) at Optum Bank if you:
- Are enrolled in one of the State’s High Deductible Health Plans (HDHP)
- Are not covered by any other non-qualified health plan, such as a spouse’s plan, unless it is permissible coverage like dental, vision, long-term care, disability, accident, and insurance covering certain types of liabilities, specific illnesses or diseases, or hospitalization.
- Are not enrolled in Medicare or Tricare
- Cannot be claimed as a tax dependent on another person’s tax return
- Are not covered by a General Purpose Healthcare Flexible Spending Account (FSA) or Health Reimbursement F train weekend (HRA)
For a complete list of HSA rules, see IRS Publication 969 for details. Other exclusions may apply.
HSA Contribution Limits - Calendar Year 2021
HSA contribution limits are determined every year by the Internal Revenue Service (IRS) under section 223 of the Internal Revenue Code (IRC).
| 2021 Annual HSA Contribution Limits | Individual Coverage | Family Coverage |
|---|---|---|
| Maximum Annual Contribution Limit | $3,600 | $7,200 |
| Catch-up Contribution Limit (age 55+) | $1,000 | $1,000 |
Note: These IRS statutory contribution limits apply to the combined total of all of your HSA deposits including contributions from you, your employer, family members or anyone else. Catch-up contributions can be made during the calendar year in which the HSA participant turns 55.
Important Disclosures
- Health Savings Accounts (HSAs) are www optum com hsa accounts and are subject to eligibility and restrictions, including restrictions on distributions for qualified healthcare expenses set forth in section 213(d) of the Internal Revenue Code (IRC).
- State taxes may apply. While Health Savings Accounts (HSAs) were created by the federal government, states can choose to follow federal tax treatment guidelines or establish their own. Please consult your tax advisor or state department of revenue for more information.
- If you are not age 65 or not enrolled in Medicare benefits or not disabled and you use your HSA funds for nonqualified purposes, any HSA funds used for nonqualified purposes are taxable as normal income and also subject to an additional 20 percent (20%) IRS tax penalty.
- After you turn age 65 or become enrolled in Medicare benefits, you may withdraw money from your HSA for nonqualified purposes without being subject to the 20 percent (20%) IRS tax penalty. The HSA fund withdrawal is treated as retirement income and is subject to normal income tax. The same holds true if you become disabled before age 65, you are not liable for the 20 percent (20%) IRS tax penalty and the HSA fund withdrawals are taxable as normal income.
- Optum Bank fees may reduce HSA fund balances.
- Federal and state laws and regulations are subject to change.
This information is not intended as legal or tax advice. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances and for personal advice on eligibility, tax treatment and restrictions.
Health Savings Account (HSA)
Eligible employees – full-time and part-time: Faculty, Classified, Managerial, Academic Professionals, and Confidential employees who are eligible for participation in the PCC health plans. Moda Plan 6 and Kaiser Plan 3 participants may elect to contribute to an HSA account. You may choose any HSA provider; however, Optum is the only provider through which PCC will provide pre-tax payroll contributions.
An HSA is a tax-advantaged account established to pay for qualified medical expenses for those who are covered under a High Deductible Health Plan (Moda Plan 6 or Kaiser Medical Plan 3). With money from this account, you pay for healthcare expenses until your deductible is met. Then, in accordance with the terms of your healthcare plan, your insurance company pays for covered expenses in excess of your deductible. Any unused funds are yours to retain in your HSA and accumulate toward your future healthcare expenses or your retirement.
You must file U.S. taxes to be eligible for an HSA. You are not eligible for an HSA if you are Medicare eligible, on Tricare, if you have received veteran’s benefits in the last three months, or if you can be claimed on someone else’s taxes. You may not participate in the Flexible Spending Account (FSA) program for health related expenses while enrolled in an HSA.
If you have dual medical coverage, both of your plans must be High Deductible Health Plans.
HSA contribution limits
2020:
- $3,550 single*
- $7,100 family*
*For primary account holders age 55 and older, the HSA contribution limit is increased by $1,000 per calendar year.
If you are considering enrolling in Moda Plan 6 or Kaiser Medical Plan 3 and the Optum HSA plan, please visit the Optum website.
You may open an HSA account with any HSA provider, but the PCC vendor is Optum. PCC offers the option of pre-tax payroll contributions to Optum only. To start your pre-tax payroll contributions to your Optum HSA account, fill out and return the HSA Contribution Form. You may change the amount of your HSA contribution once per quarter.
Fees – Optum
| Fee Description (HSA) | Rate |
|---|---|
| HSA One-Time Set-up Fee per Account | $0 |
| HSA Monthly Maintenance Fee (Waived for accounts with an average monthly balance of $2,500 or more) | $2.25 |
| HSA Monthly Charge for Investment Account | $2.25 |
| Account Re-Opening Fee | $15 |
| Express Delivery | $15 |
| Stop Payment Order | $25 |
| Returned Deposit Item | $25 |
| Excess Contribution Refund | $25 |
| Copy of Merchant Debit Card Receipt | $25 |
| Corrected 1099 or 5498 | $20 |
| Special Distribution Request | $25 |
| Mailed Paper Monthly HSA Account Statement | $1.00 |
The following services, without limitation, are included in the monthly services fee:
- Customer Service – 877-470-1771
- Website: Optum
- Open Enrollment Support
- Bill Pay
- Unlimited number of debit cards
- Reporting
- Card Replacement
- Cash Disbursements
- Modeling Tool
- Investment deposit and withdrawal
- Mail tax forms to Member’s address
FAQs
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In addition to being a current member of AARP, you must also have a qualifying high-deductible health plan that meets IRS guidelines. Learn more about HSA eligibility.
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The AARP Health Savings account offered by Optum Bank features a 20 percent discount on monthly maintenance fees (monthly maintenance fees are waived if you are over age 65). Additionally, when using your debit card at Walgreens, you will receive a 3 percent discount on most purchases* and a digital receipt will automatically be uploaded to your Optum Bank portal.
*Exceptions include: Alcohol, dairy, tobacco, stamps, phone/prepaid/gift cards, money orders/transfers, transportation passes, lottery tickets, charitable donations, pseudoephedrine or ephedrine products, clinic services, prescriptions, sales tax, shipping, or membership fees for any prescription savings programs.
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You do not have to close your account, and you can continue using the money in your HSA even in retirement. If you no longer have a qualifying high-deductible health plan, you can’t make additional contributions.
Click here to read our HSAs and Medicare FAQ.
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You can sign in to your account to set up one-time or recurring deposits. You can mail in a check. Or, if available www optum com hsa your employer, you can set up payroll deductions from every check.
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The IRS sets guidelines for how much you can contribute to an HSA each year.
2019 limits:
- An individual can contribute up to $3,500 for the year.
- An individual with family coverage can contribute up $7,000 for the year.
Don't forget: The federal income tax filing deadline and payment deadline has been extended from April 15, 2020 to July 15, 2020 (IRS Notice IR-2020-58). As a result, the amount of time that individuals have to make 2019 health savings account (HSA) contributions has also been extended to July 15. Click here to learn more.
If you are age 55 or older, you can contribute an additional catch-up contribution of $1,000 per year. If your spouse is also 55 or older, he or she may establish a separate HSA and make a “catch-up” contribution to that account.
Sign in to your account today and check your contribution limit.
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The IRS sets guidelines for how much you can contribute to an HSA each year.
2020 limits:
- An individual can contribute up to $3,550 (increase of $50 from 2019) for the year.
- An individual with family coverage can contribute up to $7,100 (increase of $100 from 2019) for the year.
If you are age 55 or older, you can contribute an additional catch-up contribution of $1,000 per year. If your spouse is also 55 or older, he or she may establish a separate HSA and make a “catch-up” contribution to that account.
Sign in to your account today and check your contribution limit.
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The IRS sets guidelines for how much you can contribute to an HSA each year.
2021 limits:
- An individual can contribute up to $3,600 (increase of $50 from 2020) for the year.
- An individual with family coverage can contribute up to $7,200 (increase of $100 from 2020) for the year.
If you are age 55 or older, you can contribute an additional catch-up contribution of $1,000 per year. If your spouse is also 55 or older, he or she may establish a separate HSA and make a “catch-up” contribution to that account.
Sign in to your account today and check your contribution limit.
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Find out whether your expense is qualified by checking out this list.
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You can use your Optum Bank Health Savings Debit Mastercard® on the spot or after you receive a bill. You can pay bills online or using the Optum Bank mobile app. Or you can reimburse yourself for a payment you’ve made.
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Click here to read our investment FAQ.
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Adding a prepaid purse or linking a personal bank account to your debit card allows you to ensure non-qualified purchases are still covered when using your card to pay at Walgreens. It takes the guess work out of the transaction as it will pull the funds from the right account.
Additionally, it allows you to maximize savings when shopping at Walgreens by allowing you to earn a 3 percent discount even on purchases that are not qualified medical expenses.
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You can add a prepaid purse or link an external account to your debit card by logging into Optum Bank at myaarphsa.com. Once logged in select “Manage Optum Wallet” from the dashboard. Once on the Optum Wallet page you can select “Manage Accounts.” Once on the Manage Accounts page you can select to add a prepaid purse or link an external bank account.
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To order additional cards for your spouse and eligible dependents, sign in to your account. In the “I want to” section, click “Manage debit cards.”
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If you’re a new account holder, you’ll be able to choose a PIN www optum com hsa you first activate your debit card. If you’ve forgotten your PIN or need to change it, call the customer service phone number on the back of your debit card.
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You can get copies of your most recent tax forms by signing in to your account and viewing the "Statements and Docs" section.
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Call 1-844-458-6738 to cancel your account.
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