The IRS sets the maximum amount that can be put into your HSA each year, including both your contributions and Sandia’s. In 2023, the maximum is $3,850 in pretax dollars if you have employee only health coverage, and up to $7,750 if you’re covering qualified dependents. Also, if you’re age 55 or older, you can add a $1,000 catch-up contribution to your account. The catch-up contribution amount (set by the IRS) is subject to change each year.
When you contribute to your HSA, Sandia does too. With each paycheck during the year, you’ll receive your HSA matching contribution (66 2/3%, up to the annual maximum match). Plus, in January 2023, you’ll receive: the incentives you’ve earned for completing healthy activities during 2022.
Also, with each paycheck during the year, you’ll receive your HSA matching contribution (66 2/3%, up to the annual maximum match).
Get the details here.
You can use the money in your HSA to pay for qualified expenses for yourself and eligible dependents only.
The IRS determines what expenses qualify as HSA-eligible. In addition to paying for covered services and prescription drugs for yourself and any eligible dependents, you can use your HSA to pay for eligible over-the-counter medications, healthcare supplies, feminine care products, and dental and vision care expenses.
For more information, review the Optum Bank’s list of HSA qualified medical expenses.
In general, the answer is no. However, you may be able to use your HSA funds for:
- Long-term care insurance premiums, up to certain limits
- COBRA premiums
- Plan coverage maintained while receiving unemployment
- Employer-sponsored retiree medical premiums (if over age 65)
- Eligible Medicare premiums (if over age 65)
If you have questions, contact Optum Bank at 866-234-8913.
You can change your HSA contribution during the year. To learn how to change your HSA election, please review our Changes to HSA Contributions article.
No, the amount you may contribute to your HSA is limited by the level of your health coverage (employee only, employee + spouse, employee + child(ren), employee + spouse and child(ren)). However, you may use your HSA funds to pay for the qualified medical expenses of eligible tax dependents, even if they aren’t covered on your medical plan.
Yes, but be sure to note the combined contribution for both your spouse’s and your HSA accounts cannot exceed the family IRS maximum of $7,750. If you’re age 55 or older, you can add a $1,000 catch-up contribution to your account. If your spouse is age 55 or older, they can add a catch-up contribution to their own HSA.
No, if your spouse participates in a general purpose HCFSA or an HRA, you are not eligible to enroll in an HSA. However, if your spouse has a limited purpose HCFSA or limited purpose HRA – used to pay for eligible dental and vision expenses only – you can have an HSA.
Note: If you are not eligible to contribute to an HSA for any reason, you cannot enroll in the new Health Savings Plan. Please refer to the fine print regarding HSA eligibility.
Yes. However, if you withdraw funds before reaching age 65 for expenses other than qualified healthcare expenses, your distributions could be subject to income taxes and an additional 20% penalty. After you reach age 65, you can withdraw the funds for non-qualified healthcare expenses without penalty, but the amounts withdrawn will be taxable as ordinary income.
No, your entire balance can be carried over from year to year, even if you change medical plans, leave Sandia, or retire.
Your HSA is like a 401(k) for your healthcare. It’s your account, your money, and you take the account with you when you retire or leave Sandia.
Yes, as an HSA account holder, you are required to maintain a record of the expenses to demonstrate that the distributions were for qualified medical expenses. You can easily keep track through Optum Bank’s website or app.
You can make a catch-up contributions to your own HSA if you’re age 55 or older. If your spouse is age 55 or over, and has their own HSA, they can make a catch-up contribution their HSA. But, your spouse is not allowed make a catch-up contribution to your HSA and vice versa.
If you switch from the Total Health PPO Plan to the Health Savings Plan, you won’t be able to use any money left in your health care flexible spending account (HCFSA) and/or health reimbursement account (HRA) after Dec. 31. So be sure to spend down those balances if you’re moving to the Health Savings Plan next year.
As long as you have not enrolled in Medicare you may maintain eligibility to contribute to your HSA. However, once you enroll in Medicare you may no longer contribute (or receive contributions from Sandia). You must disenroll from the Health Savings Plan. However, you will continue to have access to your HSA funds for future use.
If you’re planning to retire and apply for Social Security in 2022, you may be retroactively enrolled in Medicare Part A up to six months from the date you apply. If you’re contributing to an HSA, to avoid paying additional taxes, you’ll need to stop your and Sandia’s contributions six months before you apply for Social Security.
Yes. Your spouse’s enrollment in Medicare does not affect your eligibility to make contributions to an HSA.
Yes. A spouse’s Medicare coverage does not affect your eligibility to enroll them in the Health Savings Plan, and you can make HSA contributions up to the full amount permitted for family coverage (up to $7,750 for 2023).
Yes, you can use your HSA funds to pay for your Medicare spouse’s qualified healthcare expenses (if they are not reimbursed by other insurance or sources). If you are 65 or older, you can also use your HSA funds to pay for Medicare Parts B, C, and D premiums, and for certain Medicare supplement plan premiums.
No. Unlike the healthcare FSA, your annual contribution accumulates in your HSA with each paycheck — it’s not all available at the beginning of the year. You can use only the funds that are in your account at any given time. You can verify your current account balance by logging into your Optum Bank account.
No, claims will not be automatically paid from your HSA. However, you can pay your provider directly with your Optum Bank HSA debit card, or you can pay out of pocket and submit claims for reimbursement from Optum Bank.
Yes. Check out the details on combining HSAs through Optum Bank’s website.
To open your HSA, Optum Bank will ask for your street address (P.O. boxes are not accepted), your date of birth, and potentially your driver’s license, Social Security card, and other identifying documents.
No, you can withdraw any amount from your HSA balance during the year to pay for qualified healthcare expenses. Be sure to note that if you withdraw funds for expenses other than qualified healthcare expenses, income taxes and penalties may apply.
Yes. While the IRS does not allow you to contribute to our general healthcare flexible spending account if you have an HSA, you can contribute to Sandia’s DCFSA. The HCFSA and DCFSA are completely separate accounts.