Health Savings Accounts (HSA)
Frequently Asked Questions
If your question is not addressed below, please call the Human Resources Hotline at 1-800-845-6675 option 4 or e-mail benefits@ruan.com.
1. What is a health savings account (HSA)?
A health savings account (HSA) is a tax-advantaged medical savings account that is managed by the individual and carries over year-to-year. Qualified expenses are paid from the account tax-free.
2. Who is eligible for an HSA?
Employees enrolled in the Basic or Choice Savings plans (qualified high deductible plans, or HDHP) who are not covered under a secondary non-HDHP medical plan, are not entitled to Medicare and cannot be claimed as a dependent under another individual's tax return may participate in an HSA. Note that an employee enrolled in the Choice Savings medical plan may be automatically enrolled into an HSA.
3. How does an HSA work?
On the first of the month following your effective date, the member may begin pre-tax contributions into his/her HSA account. When you incur an eligible expense, simply use your account checks or debit card to pay for the bill, up to your current account balance. Employees enrolled in Choice Savings may receive a company contribution into their HSA account.
4. Is there a limit on how much can be placed into my HSA account?
Yes. The IRS places an annual limit on how much you may save. The 2024 limit is $4,150 single coverage, or $8,300 for Employee + Spouse, + Child(ren), or Family elections. Team members age 55 and older may make an additional catch-up contribution of $1,000.
5. Are there any tax benefits?
Yes. Contributions into the account are pre-tax, and qualified withdrawals remain pre-tax. If you choose to withdraw funds that are not qualified health care expenses, you must pay income tax on the amount, plus a 20 percent penalty. Note that the penalty is waived for individuals age 65 and over, allowing for additional tax-deferred retirement savings.
6. What kind of expenses can be paid for by the HSA?
Qualified HSA expenses follow the same guidelines as those for a health care flexible spending account: out-of-pocket medical deductibles, co-pays, co-insurance, pharmacy, dental and vision. For a complete list, please refer to IRS publication 969 or speak to your tax advisor.
7. What happens if I have an expense greater than my current HSA balance?
You may use any available HSA funds first, then pay out-of-pocket for the remaining charges. Once more funds are deposited into your HSA account, you may reimburse yourself from the account.
8. Are there any fees?
Monthly account fees are covered by the company while you are an active employee, however a small fee may be charged for replacing a lost/stolen debit card, copies of paper statements, or investment management fees may apply. Refer to the Terms and Conditions on your Voya account.
9. Do I have to submit a receipt after paying for an item under my HSA?
No. However, you should keep all itemized receipts and check/debit card transactions in case you are personally audited by the IRS.
10. Can I use HSA money to pay for non-medical expenses?
While an HSA is designed to save for future health care expenses, current regulations allow you to withdraw funds for non-qualified expenses. However, the withdrawal will be subject to income taxes and possible 20 percent penalty.
11. Can I enroll in both an HSA and a health care FSA?
No. Not under the Ruan program.
12. What happens to extra HSA money at the end of the year?
Because the HSA is a personal account under your name, any unused funds at the end of the year simply remain in your account for future expenses. The funds are never forfeited.
13. What happens to my HSA if I leave the company?
If you terminate employment or are no longer enrolled in a qualified high deductible health plan, you can no longer contribute to the account. However, any remaining money will remain for future medical expenses. Because it is a personal account, you may be responsible for any monthly maintenance fees the administrator may charge.
14. Can I rollover my HSA to another plan?
Yes. You may rollover your balance to another qualified account once per 12-month period.
15. What happens if I do not agree to Voya's Terms and Conditions?
Like any new bank account, you must agree to the custodial agreement between the bank and its customer. If you do not agree, you will be considered ineligible (not allowed to open the account). This means you will not be eligible for any company contributions as well.
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Questions?
Please call the Human Resources Hotline at 1-800-845-6675 option 4.