TPS is pleased to offer a Health Savings Account option for employees and their families. A Health Savings Account (HSA) is like a 401(k) for healthcare. It is a tax-advantaged personal savings or investment account that individuals can use to save and pay for qualified healthcare expenses, now or in the future. Paired with a qualified consumer driven health plan (CDHP), an HSA is a powerful financial tool that empowers consumers to be more actively involved in their healthcare decisions.
However, unlike other financial savings vehicles (Roth IRA, Traditional IRA, 401K, etc.), an HSA has the unique potential to offer triple tax savings through:
- Federal & State Tax-deductible contributions to the HSA.
- Tax-free interest or investment earnings.
- Tax-free distributions when used for qualified healthcare expenses.
HSA Bank Customer Service – 800-357-6246
Contributions to your HSA
TPS will payroll deduct your contributions and deposit them directly into your HSA.
The annual maximum allowable contributions to an HSA (employee plus employer contributions), as established by the IRS for 2020, are:
| Individual | $3,550 |
| Family | $7,100 |
Individuals 55 and older can make an additional catch-up contribution of $1,000 in 2020. A married couple can make two catch-up contributions if both are eligible. Your spouse must deposit their catch-up contributions into a separate account. Health savings accounts are administered by HSA Bank. You can access your HSA by calling 800-357-6246 or by logging onto www.hsabank.com.
Distributions from Your HSA
- You, or your authorized signer, can make withdrawals for qualified expenses.
- Any claim incurred before an HSA is set up is not eligible for reimbursement.
- Distributions for qualified medical expenses are tax free.
- Distributions made for anything other than qualified medical expenses are subject to IRS tax plus a 20% penalty.
- Qualified medical expenses for your spouse and your tax dependents’ may be paid from your HSA, even if those individuals are not covered under your medical insurance plan.
- You are responsible for keeping receipts for all distributions from your HSA. The bank does not monitor how the funds in your account are spent.
