HEALTH
HSA Overview
An HSA is a tax-advantaged personal savings account that you can use to pay for medical, dental, vision, and other qualified healthcare expenses now or later in life. Health plan copays, coinsurance, vision, dental care, and certain medical supplies are covered. The IRS provides specific guidance regarding eligible expenses. (See IRS Publication 502 at irs.gov.)
HSA Basics
Your HSA balance rolls over from year-to-year in a tax-free environment, meaning you do not have to use all your funds by the end of the plan year. In fact, you do not pay federal taxes on money going into your HSA, growing in your HSA, or being distributed from your HSA for eligible healthcare expenses.
You can invest contributions in excess of $1,000. Your account can be used for healthcare expenses now and in the future, such as retiree medical.
| Maximum HSA Contributions for 2024 | |
|---|---|
| If you have… | Total IRS limit for 2024 |
| Coverage for you alone | $4,150 |
| Coverage for you + others | $8,300 |
| Catch-up contributions1 | $1,000 |
1. If you and your spouse are age 55 or older during 2024, you can make separate catch-up contributions to an HSA—as long as a separate HSA is established for each of you. Your spouse would need to establish an account outside of the Peraton plan.
Who can open an HSA?
Tax law defines how HSAs work, including who can participate. For example, you must be enrolled in a Classic, Value, or Kaiser HDHP plan. You also cannot be enrolled in any other medical plan (including any group or private coverage, Medicare or Healthcare FSA—unless it is a limited purpose FSA). This includes a spouse’s plan, or a rollover plan from a prior year. Employees who participate in Medicare or TRICARE cannot contribute to an HSA plan. You cannot be claimed as a dependent on another person’s taxes.
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