Tax-Free Health Savings For You!

Health Savings Account 2026


Open Enrollment is now closed. You can make changes to your benefits if you have a "qualified life event." Learn more on the UVA HR Life Changes webpages.


All active, benefits-eligible employees enrolled in UVA's high-deductible health plan, the Health Savings option, are automatically enrolled in, and must be eligible for, a Health Savings Account (HSA). HSA funds are tax-free and can be used for eligible health care, prescription, dental, and vision expenses. HSA funds roll over each year and are yours to keep for future health care costs.

What to Know

2025 HSA elections and employee contribution amounts in Workday WILL automatically carry over to 2026. 

  • Your HSA benefit will be elected with employer contribution and 2025 employee contribution. You can adjust your employee contribution at any time of the year.

HSA IRS contribution limits will increase in 2026 (please note: limits include employee and employer contributions combined): 

  • Individual - $4,400 (from $4,300 in 2025)
  • Family - $8,750 (from $8,550 in 2025)
  • Catch-up (age 55+) - $1,000 (no change)

HSA employer contribution remains the same for 2026:

  • $1,000 Individual
  • $1,500 Family

The HSA offers a triple tax advantage that make it an excellent long-term savings vehicle:

  • Money goes into your HSA tax-free
  • Your HSA savings used to pay for qualified medical expenses are not taxed
  • Any extra savings can be invested, and earnings and interest grow tax-free

Enjoy these short videos that explain key benefits topics:

What is a High Deductible Health Plan and Health Savings Account?

Transcript for High Deductible Health Plan and Health Savings Account

Differences Between HSA and FSA

Transcript for HSA vs FSA

Action Items

  • Review/adjust your 2026 HSA contribution amount in Workday if you currently have an HSA.
  • Spend 100% of Full FSA funds Before December 31, 2025.
    • If you currently have a Full Healthcare FSA and are switching to Health Savings with an HSA, you must deplete 100% of any remaining funds in your Full FSA before December 31. If you do not, your HSA will not be set up until the first payslip after April 1, 2026. No employer seed funds or personal contributions can be made during this period.
  • Watch for follow-up action items from UVA HR and/or Fidelity.
    • Watch for important information via mail and email after Open Enrollment closes from HR and/or from Fidelity to ensure your HSA is opened properly and promptly.
    • If your HSA account is not open and ready for funding within 90 days of the first contribution, you will forfeit the employer contribution for that year.
  • Reminder: Anyone with a P.O. Box as their home address in Workday will have their request to open a health savings account rejected by Fidelity. It is a Patriot Act requirement to have a physical address on file before the HSA can be opened. Please verify your contact information contains your physical address within Workday during Open Enrollment. 

HSA Highlights

  • Used for eligible health care, dental, and vision expenses.
  • Balances roll over each year and accrue interest; the account and its assets belong to you, 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 month after the bank opens the account. 
  • Can be used with a dental/vision-only Limited Flexible Spending Account (LMT).
  • You can invest your HSA assets in a variety of investment options—including stocks, bonds, and mutual funds—for potential growth of your account over time. 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.)

Eligibility

  • Who is eligible?

    All active, benefits-eligible employees enrolled in the Health Savings option are required to have an HSA. You must be eligible for an HSA in order to enroll in Health Savings. You are eligible for an HSA if:

    • You are not a wage employee
    • You do not hold a J1 visa
    • You are not enrolled in Medicare or Medicaid, or are listed as a dependent on someone else’s tax return
    • You, or your spouse, do not have a balance in a health care FSA, are part of a FSA grace period, or your plan year is not over
    • You have not received healthcare benefits from the Veterans Administration (TRICARE) within the last 3 months
    • You will not be enrolled in another healthcare plan as a dependent, spouse, or subscriber (unless if that plan is also a high deductible health plan) when the HSA begins.
    • You have not already contributed the annual federal limit to another HSA, Medical Savings Account (MSA), or HRA in the same calendar year
  • Switching from an FSA to an HSA

    If you are switching from UVA PPO or Choice Health to Health Savings and you have a Full Healthcare FSA, you must close your FSA. You will need to have a balance of $0.00 in your Full FSA by December 31 to open your HSA. Otherwise:

    • Your HSA cannot be opened, and you will not be able to make employee contributions until April 1, 2026
    • You will not be able to use money in your account to cover any expenses incurred prior to April 1, 2026
  • Limited Flexible Spending Accounts

    If you are enrolled in a Health Savings Account (HSA), you are not eligible for a Full Healthcare Flexible Spending Account (FSA), but you can enroll in a Limited and/or Dependent Daycare FSA to maximize your savings.

2026 Contributions

Depending on your employee type, UVA may contribute money to your HSA to help offset the higher deductible. You can use HSA dollars to pay for eligible medical, dental, and vision expenses.

  • Employer Contributions

    Depending upon your employee type, the University may contribute to your HSA.

    • Employee only coverage in Health Savings receives a $1,000 annual contribution from UVA
    • Coverage for employee + dependents in Health Savings receives a $1,500 annual contribution 

    Currently, UVA contributes money to open HSA accounts in the UVA Health Savings Account Program for permanent full- and part-time benefits-eligible Academic and University Medical Center employees who are enrolled in the UVA Health Plan's Health Savings option. Wage employees enrolled in Health Savings are not part of this population. These funds roll over from year to year and are yours to keep and use for eligible expenses, even if you switch to another UVA Health Plan option or leave the University.

    The annual employer contribution from UVA will be prorated in the following instances:

    • New hire enrollments and employees who are newly eligible for benefits
    • UVA employer contributions will not change for any employee who gains or loses a dependent in the same calendar year
  • Individual Contributions

    You may choose to contribute to your HSA, though you are not required to do so. Employee contributions made by payroll are deducted before taxes. Each year, the IRS sets a contribution limit. This limit includes employer and employee contributions and is per household, so families with two partners working for different employers must keep the limits in mind.

    • The 2026 maximum contribution is $4,400 for employee only, or $8,750 for employee + dependents. These are pre-tax dollars reserved for health care expenses and carry over beyond your retirement.
    • Those age 55 and older may make an additional catch-up contribution of up to $1,000 per year.

    EXAMPLE: You are under 55. If you want to contribute the maximum of $4,400 to your HSA and are eligible to receive $1,000 in employer contributions, you would elect $3,400 as the employee contribution, to meet the maximum IRS limit for the year of $4,400. 

  • Managing Contributions

    Funds are sent to your Fidelity account following your first benefits deduction payroll for 2026.

    Balances roll over each year and accrue interest, and you keep the balance even if you leave UVA.

    You may invest your HSA assets in a variety of investment options—including stocks, bonds, and mutual funds—for potential growth of your account over time. Any growth made from the investment is tax-free as long as it is used on eligible medical expenses.

FAQs - HSAs

  • Help me understand the Health Savings Account and Flexible Spending Account

    All active, benefits-eligible employees enrolled in Health Savings are required to have a Health Savings Account (HSA). Funds in your HSA can be used for eligible health care, dental, and vision expenses. Funds in these accounts roll over each year and are yours to keep for future health care costs.

    If you are enrolled in a Health Savings Account, you are not eligible for a Full Healthcare Flexible Spending Account, but you can enroll in a Limited and/or Dependent Daycare Flexible Spending Account to maximize your savings.

    A Flexible Spending Account (FSA), makes it possible for you to pay for certain expenses on a pre-tax basis, which makes your money go farther.

    Here are resources to help you learn more:

  • When will I receive my HSA funds after selecting Health Savings for the first time?

    Contributions are accepted into new HSAs the month after the account is opened by Fidelity. Sometimes Fidelity may request more information to open an account. Be sure to follow up on any requests to get your HSA opened in a timely manner.

    • UVA contributes either $1,000 (employee only) or $1,500 (employee plus) once your account is opened, and the funds will show up in your Fidelity account and in your first full deduction payslip in 2026.
    • If you were hired in December, you may not have your HSA funds available until February 2026.
    • There are two primary ways to spend those funds for eligible expenses:
      1. Use your prepaid Fidelity benefits card at the time of purchase for eligible expenses.
      2. Submit claims or make payments from your accounts online through the Fidelity website.
  • How much should I contribute to my HSA?

    If you are enrolled in the Health Savings option with HSA, the HSA offers a triple tax advantage that makes it an excellent long-term savings vehicle.

    • Money goes into your HSA tax-free
    • Your HSA savings used to pay for qualified medical expenses are not taxed
    • Any extra savings can be invested and earnings and interest grow tax free

    You could contribute enough to cover the average out-of-pocket costs that you will likely incur over the course of the year. This strategy makes it more likely that you’ll have the funds on hand to cover the medical care you will need. And, as bonus, if you end up with extra funds at the end of the year, you get to keep that money to cover future medical expenses – including in retirement. 

    HSA funds cannot be refunded to you from your HSA account using the UVA payroll process if you contribute more than the IRS allows or if you change your mind about the amount you've already contributed. Be sure to calculate accurately when making your election. You can change the amount of your employee HSA contribution amount taken from future paychecks by changing your benefits in Workday.

  • Does the HSA contribution limit include employer contribution?

    Each year, the IRS sets a contribution limit. This limit includes employer and employee contributions and is per household.

    Depending on your employee type, UVA may contribute money to your HSA to help offset the higher deductible.

    You may choose to contribute to your HSA, though you are not required to do so. Employee contributions made by payroll are deducted before taxes.

  • Why is my physical address needed to open an HSA?

    Anyone with a P.O. Box as their home address in Workday will have their request to open a health savings account rejected by Fidelity. It is a Patriot Act requirement to have a physical address on file before the HSA can be opened.

    Please verify your contact information contains your physical address within workday during Open Enrollment.

  • Can my spouse and I both have an HSA?

    Yes, both spouses can have their own individual HSA, whether they work for the same employer or different employers. However, the IRS maximum contribution is a household maximum, so the combined contribution of both spouses, along with any employer contribution, cannot exceed $8,750. If each spouse has employee only coverage, each spouse cannot contribute more than $4,400 each, including employer contributions. 

  • I am turning 65 this year. Can I have an HSA?

    If you will be enrolled in Medicare Part A or B at any time during the year, you should not enroll in Health Savings since you cannot contribute to an HSA while on Medicare (employer contributions are included in this).

  • I am changing from Health Savings option to UVA PPO or Choice and I have an HSA.  What do I need to do?

    You can keep the funds in your HSA and continue to use them for eligible medical, dental, and vision expenses. However, you can no longer contribute to the HSA. 

    There is no requirement to spend down your HSA before moving to another plan, even if you will enroll in an FSA. 

  • I read that I cannot have a full healthcare FSA and an HSA at the same time, so how can I switch plans if I have one of these accounts?

    You cannot contribute to a full healthcare FSA and an HSA in the same plan year. However, you can maintain an HSA from a previous year’s plan and continue to use the funds for eligible health, dental, and vision expenses; you just can no longer contribute to it. 

    Also, your spouse cannot contribute to a full healthcare FSA if you are contributing to an HSA, or contribute to an HSA if you are contributing to a full healthcare FSA (in the same plan year). 

    Employer contributions count as part of the employee’s contributions.

  • I am changing from the UVA PPO or Choice to the Health Savings option. I had a full healthcare FSA in 2025. What do I need to do in order to have an HSA in 2026? 

    You must spend down your FSA funds to $0 by 12/31/2025 to open your HSA in January 2026. If you have any funds left in your FSA in 2025, your HSA cannot be opened until April of 2026, after the FSA grace period has ended. 

    We recommend that you do not wait until the last week of December to spend the funds so that there is enough time for processing payments. 

Having trouble finding what you’re looking for?

We strive to make the information on every webpage clear and easy to find. For benefits questions or concerns, or questions about Open Enrollment, please contact the HR Solution Center by phone at 434.243.3344, or by email at AskHR@virginia.edu.

Please let the HR Communications team know if you're having trouble finding what you're looking for on these webpages, so we can improve your experience on this page in the future. 

For previous Open Enrollment email communications, see the right sidebar box on this page labeled "Open Enrollment Emails."

 

*Note for Postdoctoral Fellows: The Open Enrollment process for all Postdoctoral Fellows (non-UVA employees) is managed through UVA Human Resources. For additional information specific to Postdoctoral Fellows, contact Corinne Clasbey or Rachel Short.