An HSA is a personal savings account that allows you to pay for qualified medical expenses with tax-advantaged dollars. To be eligible, you must be enrolled in a High-Deductible Health Plan (HDHP). You contribute money to an HSA through pre-tax or post-tax contributions. The money contributed to the account is not subject to federal income tax. Funds in an HSA roll over and accumulate year after year if not spent. All money in your HSA is owned by you. In addition to being a smart way to pay for medical expenses like your deductible and copays, HSAs are increasingly being used as part of a retirement-planning strategy.
HSA Payroll Deduction Forms:
If you do not find the information you are looking for, please take a look in your Employee Group Specific Benefits Page or contact the HR Benefit Department at: (616) 234-4175 or (616) 234-4052.
Health Savings Account Contribution Options:
You have the option to choose between Health Equity OR Lake Michigan Credit Union. Please read the information below and select one account by completing the applicable HSA payroll deduction form.
Health Equity- Members are issued HSA debit card(s) and have online access to their HSA account and BC/BS explanation of Benefits (EOB's). You also have the option to pay providers directly from the Health Equity member portal account. Health Equity-HSA experts are available 24 hours a day/7 days a week at (866) 346-5800. Account will be created once your WMHIP (HDHP) HSA plan enrollment is processed. For further information on Health Equity tools go to: https://healthequity.com/learn/hsa/
If you choose Health Equity you will need to complete the Health Equity HSA payroll deduction form.
Lake Michigan Credit Union - Members are issued an HSA debit card(s) and have online access to Health Savings Account. If you choose Lake Michigan Credit Union-Health Savings Account your account must be open and active before payroll deductions start. You can open your LMCU- HSA online at: https://go.lmcu.org/hsa-maxadvantage or you can stop by the nearest LMCU branch and request to open/add HSA. If you have questions on you can contact LMCU-IRA Department at (616) 234-6335.
If you choose Lake Michigan Credit Union you will need to complete the GRCC-HSA payroll deduction.
The Advantages of Health Savings Account
Pre-Tax Contributions. Contributions are typically made with pre-tax dollars, through payroll deductions. As a result, they are not included in your gross income and are not subject to federal income taxes.
After-Tax Contributions. If you make contributions with after-tax dollars, you can deduct them from your gross income on your tax return, reducing your tax bill for the year.
Portability. The money in your HSA remains available for future qualified medical expenses even if you change health insurance plans, go to work for a different employer, or retire.
Eligible expenses include a wide range of medical, dental and mental health services. They are explained in detail in IRS Publication 502, Medical and Dental Expenses: https://www.irs.gov/pub/irs-pdf/p502.pdf
Helps you plan for the future. Money used for eligible expenses is always tax-free. After you turn 65, you may use your HSA account to pay for anything as long as you pay income tax.
For additional information visit Health Equity website: How an HSA Works
HSA CONTRIBUTION LIMITS
How much money can you set aside for future healthcare spending with an HSA?
The Internal Revenue Services (IRS) sets the annual HSA limits. The maximum annual contribution is dependent upon whether you are on an individual or family plan. Here is a list of contribution limits for the 2019 and 2020 calendar year:
Tax Year Single Family Catch-Up Contributions (age 55 and over)
2019 $3,500 $7,000 $1,000
2020 $3,550 $7,100 $1,000
The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000.
Important Details on HSA and HDHP
- An HSA is in an individual account holder's name, even when used by a spouse or dependents with family coverage to pay medical expenses. When both spouses have self-only coverage, each spouse may contribute up to the annual HSA self-only limit in their own HSA.
- If you have “other health coverage,” you may not be eligible to make health savings account (HSA) contributions.
- If you have any other health coverage you are not eligible to contribute to HSA.
- If your spouse and child(ren) are covered by “other health coverage,” but you are not, you may still be eligible to contribute to an HSA up to the self-only or family contribution limit, as applicable.
- If your spouse is covered by “other health coverage,” but you and your children are not, you may still be eligible to contribute to an HSA up to the family contribution limit.
- If your children are covered by “other health coverage,” but you and your spouse are not, you may still be eligible to contribute to an HSA up to the family contribution limit.
- While a married couple under a family HDHP share one family HSA contribution limit, they can contribute up to that shared limit in separate accounts and, if both are age 55 or older, each make a separate $1,000 catch-up contribution to an account in their own name.
- Catch-up contributions can be made anytime during the year by HSA-eligible participants who will be age 55 or older by the end of the year.
- While the Affordable Care Act (ACA) allows parents to add their adult children who have not reached age 26 to their health plans, the tax laws regarding HSAs have not changed and children ages 19 until age 26 must be considered a tax dependent in order for an adult child’s medical expenses to qualify for payment from a parent’s HSA.
- HSA holders who lose their eligibility during the year must pro-rate their annual contribution based on the number of months during which they were HSA-eligible on the first day of the month.
- The full family deductible must be met under a two person or family contract before benefits are paid for any person on the contract.
- Recordkeeping. You must keep receipts to prove that your withdrawals were used for qualified health expenses.
Additional information: HSA - FAQ's (Frequently Asked Questions)
Health Savings Accounts and Medicare
Under current law, individuals enrolled in any part of Medicare may not contribute to a Health Savings Account, this is because to contribute pre-tax dollars to an HSA you cannot have any health insurance other than an HDHP. However, you may continue to withdraw money from your HSA after you enroll in Medicare to help pay for medical expenses, such as medical, dental and mental health services. For additional information on HSA and Medicare, please contact: Maria Belmares Herrera (616) 234-4052.
The content on this site is provided as general health savings account information, it is not intended to be legal or tax advice. Federal regulations regarding Health Savings Accounts may change. Specific questions and concerns regarding your individual situation should be directed to your tax advisor. For more detailed information about health savings accounts, visit www.irs.gov.