A Health Savings Account (HSA) is a plan designed to help manage the rising cost of health care by allowing employees to set aside money to pay for out-of-pocket medical expenses and to save for retirement. Think of it as a personal savings account for medical expenses — unused funds will earn interest until they are withdrawn at retirement. Participants in an HSA must be enrolled in a High Deductible Health Plan (HDHP) and not covered by any other non-qualifying health plan.
Employees set aside money on a pre-tax basis — this means as long as they use the money for eligible expenses, they won’t pay income taxes on it. View a list of qualified medical expenses or use our Election Worksheet to estimate health care costs.
2018 HSA Contribution Limits
Self-only — $3,450
Family — $6,850
HSA Catch-up Contributions for those ages 55+ — $1,000
Once employees have enrolled and set their annual election amount, that amount will be automatically taken out of their paychecks in equal increments throughout the year before paying federal, state and FICA taxes on that amount of income. Post-tax contributions can also be made by check, online, or through the mobile app as long as it does not surpass the annual max for that year.
When an employee is ready to use the money in his/her HSA for a qualified medical expense, they simply swipe their Surency Flex Benefits Card.
Any unused funds in their HSA will roll over at the end of the year and will continue to earn interest and can be invested until they are withdrawn for medical expenses or until they turn 65 years old, when they can withdraw funds for any reason without incurring penalties.
Consumer-defined Investment Sweeps
Surency offers consumer-defined investment sweeps for our HSA members. This feature allows members to increase the balance maintained in your Cash Amount to whatever level works best for them before the surplus is automatically swept to their investments. More cash means more dollars available immediately to pay medical expenses online or by using their Surency Flex Benefits Card. Learn more about consumer-defined investment sweeps.
We understand your employees may be hesitant to set aside funds pre-tax to use at a later date for approved expenses. We’ve mapped out every aspect of the consumer experience down to the smallest detail to ensure your employees understand the benefit — guaranteeing a positive experience for both employees and employer.