Health Savings Account (HSA)
- Learn how the Federal CARES Act Impacts Your Health FSA/HSA. Read the message from Chard Snyder.
- Available to those who are enrolled in Basic Health.
- Used for eligible health care, dental, and vision expenses.
- Balances roll over each year and accrue interest; you get to keep the balance even if you leave UVA.
- Both employees and employers can make pre-tax contributions up to the IRS annual limit. For those age 55 and older, there is an additional catch-up amount allowed.
- Contributions are accepted starting the first of the month after the bank opens the account and can be used to pay claims with dates of service on or after the first of the month after the bank opens the account. Funds become available after deposited by the third bank day after payday.
- Can be used with a dental/vision-only Limited Flexible Spending Account (LMT).
- During your initial Basic Health enrollment, you can complete banking forms in order to allow employer/employee deposits. (Additional info may be needed to do this. If so, you’ll be contacted and given next steps.)
- Once your HSA has a balance of $1,000, you may invest it in mutual funds; any growth from the investment is tax-free, so long as it is used on eligible medical expenses. (You can refer to HSA Instructions in the resources below for details on what is considered eligible.)
- To continue your HSA each year, you must re-elect the program in Workday during Open Enrollment.
- If you do not re-elect and you had an HSA in the previous year, your benefit will be elected, with employer contribution, but with $0 employee contribution.
- You can add or change your employee contribution at any time in Workday.