For those enrolled in either the $1,850 or $2,850 Deductible Plans, let’s take a minute to recap the features of a Health Savings Account and how to maximize its benefits.
There are several good reasons your HSA works to your advantage. This account that you use to pay for qualified health care expenses is owned by you, controlled by you, is tax-free, and Pearson helps by contributing to it.
Beginning in 2022, lump sum company contributions made at the beginning of the year to your Health Savings Account will no longer occur. Instead, the company contribution to your Health Spending Account will be matched throughout the year, dollar for dollar with your payroll contributions, up to $500 for employee-only coverage, or $1,000 if you are covering dependents.
The Internal Revenue Service sets annual limits on the total amount of money that can be contributed to your HSA. In 2022, the limits on combined contributions by both you and Pearson are:
- $3,650 for employee-only coverage
- $7,300 for family coverage
If you will be age 55 or over in 2022, you can contribute an extra $1,000 beyond the limits above for calendar year 2022.
Frequently Asked Questions about the Health Savings Account
Q. I don’t have enough saved in my HSA right now for a large expense. Can I pay another way and reimburse myself later when my balance is greater?
A. If you have a large expense before you have enough saved in your HSA, you can pay another way and reimburse yourself from your HSA later. Just be sure to save your receipts.
Q. Can I be claimed as a dependent on someone else’s tax return or be enrolled in any other medical coverage if I contribute to a Health Savings Account?
A. According to Internal Revenue Service (IRS) regulations, you are not allowed to be claimed as a dependent on another person’s tax return if you are participating in a Health Savings Account. In addition, the IRS does not allow you to be enrolled in any other medical coverage, including a spouse’s plan or Medicare if you have an HSA.
Q. Can I withdraw money from my HSA for anything other than qualified health care expenses?
A. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty if you make that withdrawal before age 65.
Just like any financial account you have, you need to be able to manage account activity. It’s easy to do with your HSA, here’s how:
- Track your stats. Log in to your medical plan’s website to see how much of your deductible you’ve met, review claims, use helpful tools, and more. Likewise, keep tabs on your HSA by logging in to the Mercer Marketplace (click on “Link to your Saving and Spending Accounts” at the bottom of the Savings Account tile) to view your balance, submit claims, and more.
- Change your HSA contributions anytime. Adjust your contributions as necessary during the year to keep your savings on track with your anticipated expenses.
Note: You can only spend HSA contributions that have actually been deposited into your account.
- There is no “use it or lose it” rule. You will never lose any money left in your HSA, as it rolls over year after year, so use your HSA to stash away tax-free money you can spend on eligible health care expenses anytime during your career or in retirement.