Health Savings Account
How a Health Savings Account (HSA) Works
A Health Savings Account (HSA) is a personal savings account you can use to pay for qualified out-of-pocket medical expenses with pretax dollars —now or in the future. Once you’re enrolled in the HSA, you’ll receive a debit card to help manage your HSA reimbursements. Your HSA can also be used for your expenses and those of your spouse and dependents, even if they are not covered by the HDHP Medical plan.
You contribute on a pre-tax basis and can change how much you contribute from each paycheck up to the IRS maximum of $3,850 if you enroll only yourself or $7,750 if you enroll in two party or family coverage. You can make an additional $1,000 catch-up contribution if you are age 55 or older.
Medical, dental, vision and prescription drug expenses incurred by you and your eligible family members. Click here to view HealthEquity’s eligible medical expenses.
Using your account
Use the debit card linked to your HSA to cover eligible expenses or pay for expenses out of your own pocket and save your HSA money for future health care expenses.
Money left in your HSA at the end of the year will roll over to the next year –you’ll never lose your HSA dollars. If you leave the Company or retire, you can take your HSA with you and continue to pay and save for future eligible health care expenses.
The account is administered by HealthEquity. Once you enroll in the HSA, an account is set up for you. You’ll need to confirm your account with HealthEquity—once you complete the confirmation, your debit card will be sent about two weeks later. If you currently have an HSA account through HealthEquity, you will need to reconfirm your account and you’ll receive a new debit card. FranklinCovey will contribute based on your coverage level. You own the account and control the account. HealthEquity will not regularly ask for receipts, however you should retain receipts in case you are ever audited by the IRS.
- You may change your contribution at any time.
- The money in the account earns interest.
- The account rolls over from year to year. There is no use it or lose it rule.
- Investment options are available after you have a balance of $1,000 or greater.
The HSA is portable and can be rolled into your own individual HSA if you leave FranklinCovey. You can pay for eligible expenses by using your debit card (preferred), or you can go online to pay yourself back. You are required to report your HSA account activity on your taxes each year. Refer to IRS Publication 969 for this information. FranklinCovey will report the amount deposited from your pay on your W2 each year.
- You are responsible to keep receipts of all transactions from your Health Savings Account to legitimize that you withdrew funds for qualified expenses, if audited by the IRS.
FranklinCovey Company will contribute the amounts listed in the below table to your Health Savings Account. If you are an employee on January 1st and enrolled in our medical plan, you will receive the entire annual HSA contribution in your account on or around January 1st. Otherwise, the employer contribution is prorated based on your hire date.
|Medical PlanEnrollment Tier||$1500 Individual||$3000 2-Party & Family||$2400 Individual||$4800 2-Party & Family|
|Annual HSA Contribution||$400.00||$800.00||$650.00||$1,300.00|