HSA - Health Savings Account Fact Sheet

Last updated: 11/2/2018

CU offers its employees the opportunity to participate in a Health Savings Account, administered by Optum Bank. An HSA is a savings account owned by an individual where contributions to the account are used to pay for current and/or future qualifying medical expenses for you and your tax dependents. The HSA has a triple-tax benefit: contributions are pre-tax, any growth and qualified withdrawals are tax-free. HSA funds are yours to keep if you don't use them. The funds carry forward year after year even if you change employers or retire.

IRS Regulations

  • Employees must be enrolled in CU Health Plan - High Deductible to contribute in the Health Savings Account.
  • The maximum amount the IRS allows you to contribute to your HSA in 2019 is $3,500 for single coverage and $7,000 for family (2+ members) coverage. If you are age 55 or older, you can contribute an additional $1,000.
  • To be eligible for the HSA, you cannot have any other medical plan coverage, including Medicare Part A and/or Part B or TRICARE. If you contribute to an HSA after your Medicare coverage starts, you may be subject to tax penalties. Medicare Part A coverage will be effective six months prior to the date you apply for Medicare or Social Security benefits, but no earlier than the first of the month you were eligible for Medicare. To avoid a tax penalty, you should not contribute to your HSA up to 6 months prior to enrolling in Medicare.
  • You cannot be claimed as a dependent on someone else's previous year tax return.

HSA Basics

  • Your HSA contributions are calculated on a calendar year basis. At the time of enrollment, you elect the yearly contribution, and that amount will be divided by the number of remaining pay periods in the year. Your final contribution will be December, however the same monthly contribution will continue for the following calendar year unless you make changes.
  • Contributions are deducted from your paycheck on a pre-tax basis.
  • You can enroll, cancel or make changes to your contribution at any time via paper form or by calling the Benefits Administration office at 303-860-4200, option 3.  If the enrollment/change form is submitted by the 10th of the month, it will be effective for that month’s pay cycle. Otherwise, it will take effect the following month.
  • You cannot make contributions to both a Health Care Flexible Spending Account (HCFSA) and a Health Savings Account (HSA).
  • The money in your HSA becomes available to you when it is deducted from your pay.
  • Optum Bank will mail you a welcome packet along with your HSA Debit Mastercard. You can either pay with the debit card or pay out-of-pocket and reimburse yourself later from the HSA funds.

For questions about the plan and how to enroll call 303-860-4200, option 3, and our benefits professionals will walk you through the enrollment process.

For questions about your account, debit card or any other questions, visit www.optumbank.com or call 1-844-326-7967.

Plan Specific Links:

Qualfied Expenses from Optum
IRS Publication 502 - Medical and Dental Expenses
IRS Publication 969 - Health Savings Accounts
How to use an HSA
FSA and HSA comparison