The Fine Print
Annual HSA contribution maximums are set by the IRS, and they’re the combined total of your and Sandia’s contributions. If you exceed these limits, you’ll pay regular income tax, plus a 10% penalty on any excess contributions. (Note: If you and a member of your family each have an HSA, be sure that the total combined contributions don’t exceed the 2022 family maximum of $7,300.)
You cannot contribute to an HSA if:
- You’re covered by a non-high-deductible health plan, like your spouse’s plan or the Total Health PPO Plan.
- You’re enrolled in Medicare or TRICARE. (Important note: If you’re planning to retire and start Social Security, 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.)
- You’re claimed as a dependent on someone else’s tax return (other than your spouse’s).
- You or your spouse is enrolled in a general-purpose healthcare flexible spending account or general purpose health reimbursement account. (With an HSA, it’s OK if you or they participate in a limited purpose HCFSA or limited purpose HRA used to pay for eligible dental and vision expenses only.)
- You’ve received certain benefits from the VA or the Indian Health Service in the last three months.
If you are not eligible to contribute to an HSA for any of the reasons above, then you are not eligible for the Health Savings Plan.
Also, to open a health savings account you must pass through the U.S. Patriot Act screening process. Optum Bank will ask for your name, street address, date of birth, and other required information during the enrollment process. If some of that information does not match up to the federal database, Optum Bank will require additional information, which may include a copy of your driver’s license, Social Security card, or other identifying documents. If you do not pass the screening process, you will receive a letter from Optum Bank. You will not be able to enroll in the new Health Savings Plan, and you’ll have the opportunity to switch to the Total Health PPO Plan or waive medical coverage.
Contact Optum Bank at 866-234-8913 with questions regarding your eligibility.
Finally, you can begin using your HSA funds once your Optum Bank account is open and active. So be sure to complete the required steps as soon as you get your welcome kit from Optum Bank.