A Health Savings Account (HSA) is a tax-deductible savings account used with a high-deductible health plan. Contributions made to this account are not taxed at the time of the deposit. Withdraws from an HSA account are non-taxable and penalty free when the funds are used to pay for qualified medical expenses.
Eligible associates choosing to enroll in medical benefits will be participating in Pace’s Consumer Driven Health Plan (CDHP). This is a qualifying high-deductible health plan. They also can open an HSA account. Once an associate’s HSA account is opened, Pace will contribute $41.66 for an associate-only plan or $83.33 for a family plan to your HSA account each month. Associates can also elect to make contributions throughout the year as pre-tax payroll deductions. Associates 55 & older will have the option of participating in HSA Catch-Up Contributions.
HSA participants will receive an easy to use debit card from Health Savings to use towards eligible expenses. For example: doctor’s office visits, prescription medications, dental visits or prescription eyeglasses. For additional information about your HSA account or to obtain a new/replacement/additional Health Savings card please contact Health Savings at 888-354-0697 or healthsavings.com.
HSA Bullet Points
- Contributions are tax deductible
- Your account grows tax deferred
- Our balance rolls over every year
- You’re not taxed when it’s used to pay medical expenses, including dental and vision
- Any contributions to your HSA account are yours to keep
HSA Limits for 2020
HSA Individual Contributions, $3,550
HSA Family Contributions, $7,100
HSA Catch-Up Contributions, $1,000