Changes for 2021 are noted in pink. Please review carefully.
A Health Savings Account (HSA) is a tax-advantaged account which allows you to pay for your eligible out-of-pocket health care costs using pre-tax dollars – meaning you save money.
You’re offered an HSA if you select the Advantage Plan. You can use this account to pay for your health expenses in the current plan year or roll it over into future years.
We want to help you maximize your money. That’s why for 2021 you’ll receive a $600 Startup Contribution to your HSA when you enroll in the Advantage Plan, even if you were enrolled last year! The startup contribution will be prorated based upon your month of enrollment.
Don’t forget to do the math before making your choices. 40% of the households enrolled in the Standard Plan last year could have saved on their medical expenses if they’d enrolled in the Advantage Plan and benefitted from lower monthly premiums and a Startup Contribution into their HSA.
Health Equity administers the HSA. Once you confirm that you meet the eligibility requirements, Health Equity will open your account and you’ll be able to start contributing.
RAI will make a Startup Contribution to give your HSA a boost. You can contribute additional funds through pre-tax payroll deductions or by making tax-deductible contributions directly to Health Equity. You can change your contributions anytime through Alight.
The main differences between an HSA and an FSA are shown in the table below.
| HEALTH SAVINGS ACCOUNT | FLEXIBLE SPENDING ACCOUNT | |
| Who can contribute | Employees enrolled in the Advantage Plan as long as HSA eligibility requirements are met. | Employees who aren’t enrolled in the Advantage Plan. |
| What is the maximum that can be contributed during 2020? | For Individual Coverage: $3,550 Family Coverage: $7,100 At age 55 you can contribute an additional $1,000 annually. |
$2,700 |
| What is the maximum that can be contributed during 2021? | For Individual Coverage: $3,600 Family Coverage: $7,200 At age 55 you can contribute an additional $1,000 annually. |
$2,700 |
| If funds are left at the end of 2021, will they rollover to the next year? | Yes | No |
| Can the funds be invested to potentially grow? | Yes | No |
| Will the account remain open if you leave the Company? | Yes – you own the account. | Generally, no. |
You’re able to contribute to an HSA if you are enrolled in an HSA-eligible health plan like the Advantage Plan and meet other IRS requirements. If you’re unsure if you qualify, talk to a tax advisor or consult IRS Publication 969.
Since the HSA is a tax-advantaged account, there are rules about who can participate. You won’t be eligible if: